Kyros --
You make a valiant attempt to put a positive spin on Mr. Benhamou's performance. However....
1) Most of 3Com's growth during the early part of Mr. Benhamou's tenure was simply riding the industry's wave, as well as using acquisitions. Since the industry and 3Com have matured, the stock has either not moved at all (looking over the last 5 years), or has dropped dramatically (looking over the last 3 years). I would dare say that if Amazon.com is at around $20 in 5 years, one would be hard pressed to describe Mr. Bezos as a competent CEO. Having explosive growth in a networking company 7 years ago, like an internet company today, is due to the industry. A CEO's ability is best measured when pitted against others. In this respect, Mr. Benhamou has failed miserably.
2) With respect to the insider selling, if you wait a few more months, there will be none at all over the preceding 12 month period. While other companies have had insiders sell rising stock on a consistent basis, the 3Com insiders sold en masse in a narrow window... right before a precipitous drop in the share price. With the stock hovering around $25 for the last 6-7 months, there, not suprisingly, has been no insider selling. When comparing insider selling at 3Com to that at other companies, like MSFT or CSCO, it's misleading to ignore the context. If the insiders sold large blocks at ~$45 and the stock had risen 40% instead of falling 40%, 3Com shareholders wouldn't be feeling like we were mugged.
Here's an interesting exercise: find another CEO of a tech company who still has his job after 5 years of a flat share price? |
