In answer to the question why Connelly....I think one can only speculate..
Not many if any top drawer food CEO's want anything to do with CAG and its BOD. Connelly needed job. The BOD was desperate to fill the slot. Rodkin was toxic.
CAG is seen as a third tier food company with mostly second rate brands and saddled with the Post deal , huge debt and medicore managment..no superstars here..
Hard to find fast trackers who want to bed down in Omaha. Rodklin never moved.
My guess..over the next three years CAG brands will be sold off and shell of company will remain as contract mfg.
As I write this I am reminded what goes around comes around....in the seventies CAG was a struggling hodge podge grain company when Harper came aboard.. That is where we are headed except this time it will be potatoes and cereal.
You are right. Connelly can' t fire them but they can fire him so nary a peep will you hear from that source.Not one of these BOD members are going to stand up and admit they are not right fo for the job. I am sure if we had the opportunity to talk with them ( which we will not) to a man or (woman) they would say no one told us.we were not headed in the right direction.
What baffles me is why some of the large sharheolders who have taken a bath and not demanded change (I guess they did with Rodkin otherwise he would still be around).
Roughly 10 years and tensof millions of shareholder money paid to Goldstone/Rodkin and the BOD this is what we have:
From analyst report
A perusal of ConAgra's product line reveals that the company's products are becoming more and more obsolete.
The natural and organic wave is just starting, and we believe this justifies low-growth expectations for ConAgra.
Despite being cheap, ConAgra sports a weak balance sheet, unappealing internal strength, and tight margins.
We believe this stock not a worthwhile investment, and we arrive at a present value roughly in line with current market value.
The whole deal with Connelly is how desperate he was for a job. If he made a deal where the BOD will stay out of his way and he does not have to kowtow to Goldstone the CAG shareholder has a shot with him. if on the other hand he has to raise his hand to go to the bathroom the shareholder is cooked.,
The BOD and Goldstone has amply demonstarted over the last seven years they do not have a clue..
No surprises here. Post of Dec. 18, 2015
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2nd Quarter Results
by bumgag • Dec 18, 2014 4:47 PM Remove
CAG continues to be a no gorwth --low investor expectation company.. Typically at the end of the first quarter it was wine and roses but those of us who hae been around awhile in the Rodkin-Goldstone era know that the second quarter always brings a whoops. My prediction is when the third quarter rolls around there will be another whopps and the yearly expecations will be lowered.
We are dealing here with a lame duck CEO who on the one hand wants to go out on a high note and a BOD who wants to put as much blame for non-performance on the out going guy. Couple that wih any CEO interviewing for the job is going to want all the bad news out. The BOD wins out over the desire of the outgping CEO for a burnished legacy
.I hate to say it but anybody with a $200K salary or more had better start looking for a new job. It a solid bet to say just as Rodkin did with his string of in and out Pepsi Petes...the new guy will be cleaning house.
Finally to beat the drum once again: in additon to a new CEO CAG needs a new BOD. Only then will CAG get on a growth track..
CAG's BOD continues to add to its reputation as one of the worst BOD's on the planet. First they delay years in not canning Rodkin then when faced with an acquisition disaster (Purina) they finally announce Rodkin's resignation a year in advance or to put it another way they say to the shareholders Rodkin has to go but we are going to allow him to stay for a year while we look around for a replacement. Good Lord .
Can you imagine what it is like to work for CAG wondering who the new guy might be, will I have a job, or .
am what I am doing now going to be viewed as foolish.
This like a grade c movie.