2/ Exactly 1 year ago today, we published this rant: Andrew Jassy Amazon's Next Bob Nardelli?
kailashconcepts.com/andrew-jassy-a…
kailashconcepts.com/andrew-jassy-a…
3/ When Jeff Bezos, Chairman and Chief Executive Officer of Amazon stepped down and handed the reins to Andrew Jassy, former head of Amazon Web Services we thought the timing phenomenal. For Mr. Bezos.
4/ Andrew Jassy’s transitioning to the executive of all-things-Amazon strikes us as incredibly similar to Bob Nardelli’s taking the helm of Home Depot in December of 2000. We do not say this to disparage either man. Quite the contrary.
5/ In Bob Nardelli’s case, he took over Home Depot at a point when expectations were running high.
6/ He grew sales by over 100% and grew earnings per share by 179%.
7/ You’d think that was pretty good right?? Yet Nardelli was named “Worst American CEOs of All Time” by Conde Nast and was effectively ousted by the Board. A withering article from Wharton delved into Mr. Nardelli’s many failures as CEO.
#KCRDailyThread
#KCRDailyThread
8/ Don’t cry for him. He walked away with a $210 million compensation package. Here’s what happened to Home Depot’s revenues, earnings and stock price over Nardelli’s tenure. 👇🏼
#KCRDailyThread
#KCRDailyThread
9/ So what happened? Nardelli served as the CEO during a period in which a stock priced for tremendous growth fell….despite Nardelli delivering tremendous growth. At some point, even for the best companies with the best management, the multiple you pay for the stock matters.
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