Does he have more new ideas to revive the company despite trial and error for 5 years?
Why is he still hanging on for?
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Forgot to mention, the CURRENT Dow CEO is on the 3M Board (he's not the guy who almost bankrupted the company, but was part of his executive team). I have to wonder he knows what a sinking ship looks like.
Regarding Mike's comments in 2015 and the Dow/Dupont thing, I know some people who worked at both companies at the time. There are definitely some parallels, particularly with Dupont and 3M. Both Dow and Dupont had lousy self-serving CEOs.
The Dow CEO nearly bankrupted the company by overpaying for Rohm and Haas in 2008. He was able to survive because he had packed the board with his buddies (just like our own Mike!). After promising big returns from the Rohm acquisition, the great recession devastated the company, with enormous debt (kind of like Inge did borrowing to buy back shares over 200). An activist investor (Daniel Loeb) decided to buy a stake and force down to break into smaller companies. He also wanted the Dow CEO fired.
Meanwhile Dupont, which like 3M, was a giant source of innovation (Kevlar, nylon, etc.) In the 20th century, had fallen victim to the same fanaticism of quarterly earnings that 3M fell for this century. Layoffs became the control valve (using a chemical industry term) to regulate earnings. Sales down? Layoff a few thousand. Lose a big lawsuit? Layoff a few more thousand. Meanwhile, another activist (Nelson Peltz) decided to buy a stake and also force Dupont to break into 3 companies. Eventually he forced out the Dupont CEO and put in a known breakup artist (Ed Breen). Oh yes, and Dupont tried to avoid the activist by selling off their hotel, country club, and theater after being criticized by the activist for such "corporate waste." You can be 100 percent certain the sale of tartan in 2015 was to avoid 3M from getting the same criticism.
Under pressure from the activists, the companies decided to merge and break up into 3 or more parts. The tales of woes, layoffs, people getting reassigned to a different company and not getting full pensions, etc. This is why I'd fear what happens next with the pension. Sounds a lot like what happened to guy who mentioned being spun off to imation in 1996 and losing a big chunk of his pension after 28 years of service at 3M.
The only thing keeping activists at bay may be the dual lawsuits for PFAS/PFOS and earplugs. But I can see exactly why Inge and Mike would do anything to avoid an activist. Unfortunately, the same ending is happening here (many smaller companies after breakup).
Somehow, the guy running Dupont was able to have all of its pension responsibilities assigned to a spun off company (Corteva). If you are a Dupont retiree, some other company with no loyalty to you manages your pension! This is why I see monish taking over HCBG and having the old 3M own the pensions. Eventually one of the spins probably owns the whole thing.
Thanks for sharing what you heard in 2015. It helps put the pieces together. Sadly, the end is near here.
I was in a leadership development program in 2015 (luncheons with directors and IBG VPs). All of the other VPs during that time left when Mike became COO, I think. The last luncheon was with Mike who was the IBG VP at the time. People had just been given notice on October 30th, this was November/December. He told us 3M under Inge did what they did to avoid activist investors and referenced the book ‘Barbarians at the Gates.’ He referenced the Dow/DuPont thing going on at the time. It was real insight into his thinking. He was all about the prevention of outside forces controlling 3M and it predicted the regular layoffs under him during him as CEO and the hiring of people like Monish and Peter. Sadly, everything that has happened under him as CEO has made the breakup of the company more likely. I really don’t know if activists would even want parent Co at this time. They would have to think it was still valuable to even begin to take over, but the stock price is now almost low enough for them to do it.
Usually his mind is a huge blank when it comes to company affairs.
He's surrounded himself with people who only tell him that all is well at the top and the problem is people below grade 15. There are too many of them and they are lazy and entitled.
He is nearing mandatory retirement age for 3M CEO so I doubt he has a plan nor needs one.
A3M was his master plan and it bombed so badly is persona non grata - people won't even mention the phrase any more.
Mike's a nice guy from what I hear but someone saw something in him that wasn't there. He didn't even have what it took to be successful as a business VP. It took jeffrey immelt some 10 plus years to ruin GE and mike outperformed even the clutz Immelt.
During his World tour in Korea, he was asked a question by a newbie, whether it is a good time to buy 3M discounted shares. Mike couldn't even give a confident answer YES. That speaks how bad the outlook of 3M - even its own CEO is not confident.
Ps_y_op_th will habg everybody ouz to dry. More of same..