Bad Bosses Willfully Disregard Warning Signs—Ex-CEO Can’t Stand Personal Losses (Mills)
It all started back in 2002—ironically, back when we were in the thick of the Enron debacle dominating the news. When their auditor told them they had serious problems with their internal controls, Mills Corporation's management ignored the warning. Then they started to go broke. Surprise! Rather than doing the hard work of leading the company to become more competitive, they started selling the company's assets to bolster their bottom line and hide their problems—all while collecting exorbitant salaries for a job they weren't doing.
They might have faded quietly into bankruptcy, earning mega-million-dollar retention bonuses for staying in their jobs while they shut down or grossly downsized the corporation. They might have if they hadn't been sued by a former CEO who was invested in those assets and whose portfolio declined 70% in one year as a result of what he calls "reckless management."
Only $17 million left in an investment that was worth $58 million a year ago. Poor guy. Wouldn't it be nice if all former CEO's remained invested in the companies they once headed and sued when the value of their portfolios declined? Think of all the employees who might benefit by being left with a little more than nothing.
They might have faded quietly into bankruptcy, earning mega-million-dollar retention bonuses for staying in their jobs while they shut down or grossly downsized the corporation. They might have if they hadn't been sued by a former CEO who was invested in those assets and whose portfolio declined 70% in one year as a result of what he calls "reckless management."
Only $17 million left in an investment that was worth $58 million a year ago. Poor guy. Wouldn't it be nice if all former CEO's remained invested in the companies they once headed and sued when the value of their portfolios declined? Think of all the employees who might benefit by being left with a little more than nothing.
