RE: RE: RE: RE: Worst CEO
Good read chuck.
Dividend cut saved MFC $800m but wiped out over $20B in market cap.
Excerpt from your link
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On Aug. 6, Mr. Guloien took his first dramatic first step away from his predecessor and made a move avoided by every other financial institution in Canada since 1992: Manulife slashed its dividend in half, from 26¢ to 13¢. The decision was estimated to save $800-million annually, but caused the stock price to tumble 15%.
"Cutting the dividend was a step toward building fortress capital," he said at the time.
Barely three months in the corner office, Mr. Guloien appeared willing to anger shareholders by making taking an unpopular measure to rebuild Manulife's balance sheet.
"Fortress capital" became his battle cry. Manulife's capital levels had to be boosted well beyond OSFI's minimum levels that it could withstand any a reasonable range of negative scenarios in the economy or financial markets.
Three months later, on Nov. 18, 2009, Manulife shareholders were faced again with a new money raise when the company issued a $2.5-billion share offer at $19 a share. The bought deal was the second largest in Canadian history.
Read more:
https://www.financialpost.com/Inside+fortress+Drama+behind+Manulife+doors/2501883/story.html#ixzz0wVnKFORZ