Have Gustafson overstayed his time in SAS

He was on a loose footing during the crew strikes last year when his own milking of the company, shortly after getting his crews agreeing to personal cuts, came to the fore. Now it is clear he neither built up enough buffers in the good years or took action fast enough when the millions started running out seriously much faster than they where coming in.

How do you manage to loose all your shareholder funds in a quarter where the pandemic for the  mostly was somewhat absent and only did real damage in the last 2-3 weeks.
Qustions need to be asked whether loosing all the funds during the winter and then reestablishing them during the summer has been a regulaire thrait over the years. In that case somebody have been compensated way to well, including the CEO himself. Not at all according to the comapany's real overall results.

In general the pandemic learns us that top managment compensations need to be even less concentrated on short term quarterly and yearly goals, and much more on the entity's ability to survive years into the future. Milking a company for its last resources carry not nearly enough financial penalties for the perpeterator, if any at all. Actually quite the opposite with a fat goodbye payment and an even juicier pension.

Comments

Post a Comment

Popular posts from this blog

Is this the endgame for Norse, not necessarily

Norse have again announced that they need another capital injection. This time it might be different because last time they needed money the ceo and large owner Larsen said that it was the last time he injected more from own funds. Thi reminds me of the endgame ein Flyr where major investor Braathen said something similar in the autumn. When they agin needed money the following Januar nobody came forward and that was the end for an airline that could have been saved after the October refill with some major mangement changes that could have implemented even stricter cost savings, found income immediately and not paid out cash  immediately for possible charter incomes in the future. If Norse turns to more subleasing out of planes or charters they need to ensure that there will be upfront payments because it will mean upfront costs. Difficuolt concept for underfinanced charterers but rquired for an airline on the brink. Norse management also need to be based closer to where the action...
Read more

When will Boeing's new chief get around to solving problems instead of letting new ones happen

So far the new Boeing CEO is not standing out as a problem solver. His first couple of months has more been a deepening of the Boeing rut. Maybe his immediate and well announced (partial) relocation to Seattle was not such a smart move after all. It certainly have given the machinists the guts to demand back stuff they gave up 10 years ago because Boeing then threatened to move more production away from the area. He needs to be careful with letting his division leutenants run the show by playing hardball with the unions at a time when Boeing needs to ramp up production, not let it grind to a halt altogether. They may have more experience from within Boeing and been seen by the previous CEO as leading lights but it is time for a new regime. The previous one created and proeeded with more trouble than it was worth for both customers and the company itself. Boeing might be too critical to the for all practical purposes duopoly in passenger plane making in the western world, but that deepl...
Read more

Questionmarks over how Boeing saved costs when using plug instead of door

 What on the overwing exits stop them physically from being opened by a passenger with poor survival instincts during flight and did Boeing design engineers remove this safety mechanism from instructions for when installing a plug instead of a door. What other safety features did they omit on the grounds of cost saving in the design for using a door plug instead of a real emergency exit.  Normal cabin doors can't be opened during flight by design since they swing forward into the wind. There are few comments around on how this door (when installed) pivots. Is it up like the overwing exits or is it down since with such a small door there are probably no self inflating slide like the normal cabin doors. Or is it left or right. On the 737-200 the emergency exit overwing door came out loose and into the cabin. On the 737-NG-800 they swing up and out of the way. I doubt it just is pushed out and fall down because that could damage it during testing / maintenance. Would the overwing...
Read more