Apparently, this mess with stock price can easily stop if BD decides to change course from M&A strategy to the old dictum of buy back. Not sure what's stopping the CFO kid to suggest that.
But it isn't just AIG that'sh--. Even MetLife and others are hit hard.
My sympathies with those facing RIFs due to this colossal waste
Look at what Berkshire did to prevent their share's downslide. They bought close to $1B of stock! With V-purchase, AIG can hardly justify any purchase.
Strategic mis-step by a non-diverse Executive team.
I think the stock has been discounted for the expected poor results in 3Q. Having said that, since BD started the stock went down more than 30%. The S&P went Up more than 10% during the same time. Talk about shareholder value destruction. The employee morale is the worst in history right now with the continued layoffs. I see a lot of people who actually want to get laid off so they can get the package and 100% STI. The people who don’t get fired will probably get little STI and increased workload. The company treats its employees so poorly, like disposable paper cups. Sad.
They blew all the cash firepower on V-buy and have a LTDebt of $31b on a book value below $60b! Dang!
PDH dug a hole in there for BD to rest.
A classic case of complete shareholder's value destruction.