RE:Constellation's $5b conspiracy: Firing Bruce - what's nextWhile the firing of Bruce came a little earlier than I expected. I can understand the reasoning, a large part of the loss last quarter was the expensing of stock options. Bruce comes from a high tech background and believes wholeheartedly that stock options are gold that makes a difference for rank and file employees.
The sad truth is most low level employees live hand to mouth and don't grasp stock options. It is not a difference maker for most employees. Bruce wouldn't change his mind and believed spending to ensure growth was the best way to ensure success. It was always the next thing: profit once buildouts are done, profit once rec market is open, profit once the edibles are legalized, profit once the US market is open.
Constellation wanted a more operationally focused firm with less wastefull spending. Can't say as I blame them.
Antham
MNK3240 wrote: Investing five billion dollars and putting up with a guy name Bruce, nope, not gonna work. Constellation had majority on the Board but that was not enough to get the job done. Lucky break or intentional one but Acreage deal brought that opportunity and support to get rid of Bruce and put their own management in place.
Bruce knew all along that his job is at risk ever since Constellation - Canopy deal was done and gave them majority in the Board membership but the biggest mistake (or not) was not to be able to balance a little between incurring cost and growth. Of course, if you are going for growth, you have to expense but Constellation was not in a position to take the loss from Canopy and consolidate in its balance sheet and look bad. Probably, Bruce was not to stop growth and thereby, incurring cost. So Constellation went for the safer option (?) to get rid of the guy got them on board in the first place. Of course, this is not the first time, Steve Jobs was ousted from Apple before coming back again.
Will Bruce Linton come back again? Nobody knows, Steve Jobs did!
My guess is Constellation will try hard to reduce cost (including stock options) to bring down the loss, if not showing profit in next couple of quarters, which will definitely increase sp in short term but in the process, they may ruin Canopy's prospect of becoming a giant in the future.
Just a personal opinion. Feel free to refute or comment in a professional manner. thanks