That's a fac, Jac.
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That's a fac, Jac.
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Never, under any circumstances, consume a laxative and sleeping pill, on the same night
I agree with you on this, but I think you are overlooking one important aspect. It is the responsibility of the CEO and B of D to maximize profits over the long run. Most US companies are managed for 1 - 2 quarters. At some point, Delta decided that making money now, at the expense of next year, was more important. CEOs mostly are in it for the big headlines (profits) for this quarter and year so they maximize their own bonus. By the time the chickens come home to roost, they have left for a bigger company and paycheck.
There are of course exceptions. Those are the companies I like to invest in, not the ones with CEOs on a bungee cord. There is a parallel in the buying community of course. Buying a table saw for $800 because it is 'good enough' but cursing it out every time you do a glue up and nothing fits. The most expensive tools I have ever bought are the cheap ones.
Be aware, as I know many are that, there are two very active web sites Vintagenachinery.org and owwm.com. They offer excellent advice, downloadable original manuals and forums to assist owners of vintage machinery (not just Delta) with problems and the ability to advertise for vintage parts you may need. The good news is that vintage Delta machinery was produced in such numbers that there is a high likelihood that parts are available on the noted web sites. Be aware that no discussion of Chinese or Taiwanese machinery is allowed.
I was not overlooking it, I am blaming the board of directors. The board hires and fires CEOs. The board approved the CEO's strategy and the annual spending, R&D, and revenue plans. When the CEO guts the company he is being directed to do that by the board. CEOs are a very visible target but the board has more of the responsibility. JC Penny is an interesting example. The board hired a new CEo because he proposed to radically change their business. He was on track to what the board wanted but when the biggest investors started calling for the CEO to be fired the board fired the CEO. Shareholders own the company, the board is voted in by the shareholders, and the board approves the hiring and compensation of all corporate officers. Any stock option plans for the company are also approved by the board.