Friday, July 23, 2010

Ode to Eddie Lampert

The difference between saying what you believe and saying what people want to hear:

On June 7, 2005, Eddie Lampert Penned the following to Shareholders of Sears Holdings: "I intend to serve without compensation, either in cash or stock options, consistent with my belief that large owners who serve as Chairman or CEO are best compensated by increasing the value of the company over time for all shareholders rather than through large compensation packages." Lampert lived up to his words.

Another CEO, Sardar Biglari, spoke similar words on February 27, 2008: "Our interests are aligned with yours. As one of the largest shareholders of the firm, we seek to make money with you, not off you."  A week before that he had some offered some other relevant tidbits: "In addition, the board's letter reiterates the falsity that we are seeking to control the company for our own personal benefit and therefore should pay a control premium.  Nothing could be further from the truth." It turns out the only thing far from the truth were Biglari's words (some even call him BigLiar now).

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