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by kijuhygfhjk
5925 days ago
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>Why big M&A rarely works Big M&A always works, all the people involved in this got large bonuses and promotions, then they left for new jobs with experience of managing $Bn M&A deals - which gets them up the promotion ladder. What happened to all the people at AOL who said it was a bad deal, where are they now? |
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http://yglesias.thinkprogress.org/archives/2010/04/corporate...
"Brief synopsis: Kraft acquires the 200 year old British confection-maker Cadbury after a heated battle. The chairwoman and CEO Irene Rosenfeld (already not a good sign, best practice is to separate the two roles) was awarded a 41% pay increase, bringing the total to $26 million for 2009 for her “exceptional role” in the Cadbury transaction, as well as her “commitment to fiscal discipline."
... "The punchline is that Kraft actually screwed up. Part of their plan for Cadbury involved closing off the company’s pension plan but there’s “an obscure clause in Cadbury’s pension trust deed that makes it almost impossible to close the scheme.” As a way ’round this obscure clause, they’ve issued an ultimatum to employees, threatening them with a pay freeze unless they “voluntarily” agree to opt out of the pension plan. Point being that no matter how obscure the clause may or may not have been, this is supposed to be part of your due diligence before you buy a company, to say nothing of “exceptional” performance"