|The only thing worse than a bad cup of coffee|
is losing your company.
This is why last Tuesday's story from Reuters is so unique. The founders of Green Mountain coffee were fired from their own company by the board of directors. It seems that Robert Stiller and William Davis were barrowing money against the share price of their company and when the share price fell thanks to over-expansion Stiller and Davis were forced to sell to make good on the loans. This put them into direct conflict with board of directors and the owners of the business.
This is how corporate governance is supposed to work. It is not fair or pretty but it works and this promises that the shareholders are not going to be holding the bag for bad business decisions. We should see more stories like this in the business world but alas J.P. Morgan Chase is going to forgive its CEO for losing 2 Billion dollars. I suppose small steps in the right direction are better than no progress at all.
Next time we are going to talk about how we can help you stay on top of your inventory.
Until next time.