4 ms·
> don't they also have some corporate raider type as CEO who's totally cashing in on running this chain into the ground? Institutional Investor tried to answer
by troydavis 7y ago
> don't they also have some corporate raider type as CEO who's totally cashing in on running this chain into the ground?
Institutional Investor tried to answer that question in http://institutionalinvestor.com/article/b1c33fqdnhf21s/Eddie-Lampert-Shattered-Sears-Sullied-His-Reputation-and-Lost-Billions-of-Dollars-Or-Did-He http://institutionalinvestor.com/article/b1c33fqdnhf21s/Eddi.... Their take:
"… ESL hasn’t lost the entire $1.5 billion it invested in Sears and Kmart equity. Including the gains and losses on the major spin-offs, dividends, and interest income, it appears that loss was narrowed to about $624 million. Adding back the $2 billion in gains from hedge fund fees would give Lampert a net profit of approximately $1.38 billion. And that’s not even counting the uncertain value of his $2.6 billion in Sears debt, with its liens on Sears real estate, among other items."
Industry consensus is that no one would have chosen to make this investment if they knew what the next 10 years would look like, but given those abysmal results, he did far better than any other stakeholder.
- perl4ever 7y agoI get what you're saying, but really, it's kind of like saying of an ordinary person - sure, they robbed that convenience store, but really, when you look at how much time they put into preparation, they only made $5/hr, so they are hardly "cashing in".