Monday, February 2, 2009

CEO Speak

On CNBC this morning Mr. "doom and gloom" David Faber had a short 'one on one' interview with Pfizer CEO Jeff Kindler about his company's current takeover of Wyeth Pharmaceuticals. They discussed the deal and what it has done to the Pfizer stock price.

Mr Kindler felt that non-operational causes hurt the stock. And the lowering of the dividend did not help either but he couldn't be concerned about one week's worth of performance. They lowered that dividend to gain cash for the deal. He also felt that the future was bright.

All in all Mr. Kindler was upbeat and was incredibly easy to understand due to his vast usage of simple language for the everyday man and woman.

This exchange between him and Mr. Faber is the best example of why Mr. Kindler is where he is and getting the big bucks:

Faber: Now unfortunately as part of this (the Wyeth takeover) there are going to be layoffs, correct?

(Pretty straight forward question, asked in English.)

Kindler: Yes, unfortunately that's true and uh we've uh identified uh about $4 billion in synergies and a lot of that is unfortunately going to come from head count reductions that we're going to be required to make in the combined company.

(Clear as mud, don't you think?)

I had always thought synergy was a good thing. I was wrong.
Head count reduction? Does that mean he is going to have to cut back on his extra-marital activities?
Going to be required. By whom, the people you are going to lay off Mr. Kindler?

Please use English not CEO speak once in a while sir.

Businesses need their workers in the same way a lioness needs buffalo. The difference is when a lioness is hungry there is no confusing her intent.

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