Thursday, June 11, 2009

Jim Cramer's Wall of Shame

Jim Cramer has a popular financial show on CNBC, Mad Money. Recently he re-invigorated his CEO Wall of Shame identifying those CEO's who have succeed in destroying their companies. As part of this process Jim has been soliciting the audience to suggest nominees to who have earned a "coveted" spot on this wall of shame. In today's business environment that shouldn't be hard.

Last night it was the turn of Lewis Campbell, the CEO of Textron to get roasted and placed on the Wall of Shame. Textron, in many respects is very similar to General Electric. Like Textron General Electric has virtually collapsed. Forbes reports, in an aptly titled article: "Dim Bulb", that under Immelt guidance that GE's "stock has delivered a negative 12% annual return, 11% less than the S&P 500 Index, taking GE's market value from $390 billion to $198 billion." Forbes goes on to write that "This record and Immelt's average annual pay of $14.4 million over the last six years put him near the bottom of our performance-versus-pay scorecard. He has some contrition about this. In 2008 he declined a bonus and earned only $5.3 million."

So Campbell gets his own special spot on the Wall of Shame but Immelt is quietly passed over. General Electric, it should be noted, is the owner of CNBC news. Consequently, Jim's boss just happens to be Immelt, the CEO of General Electric. If equality means anything, when will Immelt be placed on the Wall of Shame?

PS: We own shares of General Electric

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