When will the USB board terminate AC??

Under Richard Davis, USB was a leader amongst its peer group in every important metric of financial bank performance for about a decade. ROA, ROAA, ROE, Efficiency Ratio, Loan Loss ratio, etc. USB was head and shoulders above its peers for a long stretch. Fast forward to today, after a disastrous 5 years under AC USB is not a leader in ANY category any more. The stock is down about 40% since he took over, and now Moody's has downgraded the bank's credit rating because of capital issues related to an acquisition that is, by all reports, not going well.

USB has lost its once industry leading financial performance, hemorrhaged top talent, and onboarded a senior executive team that is the laughing stock of the industry. Warren Buffett pulled his investment after AC took over, which should be a pretty clear sign of a vote of no confidence in the current regime. The most recent appoint of Gunjan Kedia to lead the commercial bank, a position for which she has absolutely no experience, is a mere example of the incompetence that is currently at the helm of USB.

So, the question is -- at what point does the board realize Andy Cecere has been a disaster for the company's shareholders, employees, and customers and decide to fire him for his demonstrable lack of performance and track record of consistent leadership failures?

Comment! It's anonymous!

5 replies (most recent on top)

Pay someone millions of dollars a year to tank the bank and its shareholders is depressing. The board is a laughing stock among Wall Street vet CEO’s that salivate about acquiring USB’s failing line of business assets for pennies on the dollar! Not to mention they are doing everything to avoid that 700 billion AUM figure from Congress. Hiring personal consultants to meet board diversity hires and progressive agendas is their future objectives these days. Only been there since AC been at the helm and wonder how long someone can stay with such a horrific track record while getting overcompensated. Didn’t think USB was this bad but the TRUTH hurts!

Performance and reputation is the only way thing that matters to the board. Change those then change will follow.

The goal very well may to be progressive or something other than satisfying customers or producing a profit, but shareholders expect performance. If management can’t deliver or has a different agenda then the board has a fiduciary duty to protect shareholders and replace the chief executive.

#fireandy

The bank would prefer to be progressive than successful. Profits or customer satisfaction doesn't seem important to management at all.

"So, the question is -- at what point does the board realize Andy Cecere has been a disaster for the company's shareholders, employees, and customers and decide to fire him for his demonstrable lack of performance and track record of consistent leadership failures?"

For what it's worth, in my opinion the board will go along with AC until a large, powerful bloc of shareholders steps in to force the issue. It will take an activist investor, with an agenda of increasing shareholder value, to remove Andy Cecere as Chairman and CEO.

Warren Buffet isn't an activist shareholder. He made a decision to sell 95% of his shares of USB and moved on.

Thread regarding U.S. Bank layoffs

When will the USB board terminate AC??

5 replies (most recent on top)

Post a reply