Oops, it wasnt narcism, it was nepotism... the word I was looking for.
I feel a lot better now.. I am glad we had the weekend to research this, rather than a knee jerk reaction.
I myself work for a corporation that is "family run" at the top, and I see this BS everyday. For those who are getting confused about all the names & events...basically in 4 sentences...
The current CFO who just resigned Friday, was demoted from his previous position of CEO/President on 10/28/1998. The board of the corporation brought back the previous CEO to run the company, and that man is the CFO's father in law. (LOL) 2 weeks ago, the CFO who just resigned Friday, was asked to take a pay cut and to relinquish yet another title. So think about it... you just were demoted 2 months ago from the highest position in the company, took a pay cut and lost your prestigious position. And then just 2 weeks ago you were asked to take YET another pay cut, and to give up yet another position... what would you do? I would of been gone October 29, 1998 myself. Trust me, for those of you who have been stock traders for a long time, and/or have not worked in corporate America.. the day you get demoted from a position is a way for them to say "you have no future here", even if they are "nice" enough to keep you in the company.
REPOST FROM YAHOO
Lekach, which is the
current CEO and Chairman has had many run-ins with his Son-in law, Simon
Falic on a variety of fronts (compensation stock options, strategy,
management style, overall direction and vision). Additionally, Mr.
Falic's leadership skills were lacking in many fronts, thus the reason
MR. Falic was "demoted" from the titles of President and CEO in October
28, 1998 to his current title of CFO, COO and treasurer. Mr. Lekach, who
retired in 1994, came out of retirement and was appointed by the board
to take over for Mr. Falic October 28, 1998 the title of CEO and
Chairman of the Board.
I don't know about you guys but If I was "demoted" from the position of
CEO and Chairman to CFO and and COO I would be very bitter. MR. Falic's
inevitable demise came 2 weeks ago when Mr. Lekach asked Mr. Falic to
relinquish his title of stock options committe member and take a pay
cut. The writing has been on the wall for Mr. falic to resign since he
was demoted October 28, 1998 and replaced by Mr. Lekach.
Nepotism is not good and creates these family power struggles, so when a
family member leaves or resigns his/her position, all shareholders
benefit as their is less familiy in-fighting over money and power, and
unbiased fresh views and visions of growth can come in from
"out-siders".
Hope this clarified the resignation and why it happened. |
