Describe the first compensation package offered to Dunlap. Charles Elson, one of the board members was a close friend and personally recruited by Al Dunpal to be a board member was the one who did the firing.
Dunlap is known for turning around badly shaped companies into profitable companies. Also, no more shares should have been issued until a year after the acquisitions were made. Was it well designed? One of his goals as explained earlier was to increase the stock price and double sales in the next three years.
When the board asked Al Dunlap directly whether or not sales will increase as expected, he was very hesitant in answering this question and gave the board an excuse about Sunbeam needing more time to see the overall turnaround results. Although he focused on bringing in shareholder value, overall he did not meet his goals as he focused too much on short-term strategies.
Was the second compensation package offered to Dunlap well-structured? His second package was distributed too soon as he had not completed these goals. Given the fact that his first compensation package was already stock-based, this new package was excessive and not structured accurately.
Al Dunlap was not honest about the true financial state Sunbeam was in, which made it seem like he was hiding this from the board of Directors. I agree with this perspective. Perhaps a more accurate compensation plan would give employees more of an incentive to make the company even more profitable but the employees do bring value to the company.
What type s of behavior would it motivate? Every decision Dunlap made as a CEO affected not only the shareholders but also affected the needs and interests of the stakeholders in the company.
Most shocking was how Dunlap reacted to the questions by stating that if the board does not give him and the CFO support that they were ready to leave and just wanted to get paid.
Although the case does not directly accuse Al Dunlap to have been part of this, it is still a very questionable issue. In essence, shareholders are stakeholders. Dunlap had almost two years to turn the company around and bring overall value to the company.
Today, companies like Zappos and Southwest Airlines focus on making their stakeholders, primarily their employees, happy which has resulted in a very profitable business in a very competitive ecommerce and airline industry. According to Kim in Corporate Governance p. Did the board make the right decision in firing Dunlap?
The board made the right decision to fire Dunlap. Is this an example of effective or poor corporate governance?
As soon as Sunbeam acquired new companies, he was given a second compensation package. Closing down manufacturing plants not only affected the employees but the whole community.
In the long-term, the company suffered.An exploration of residents’ low-carbon awareness and behavior in Tianjin, China. Author links open overlay panel Yin Bai Yong Liu.
the New Environmental Paradigm by Dunpal et al. a case study from Oman. Climatic Change, (). Astec Industries, Inc. was founded in with the vision to apply creative thinking and state-of-the-art technology to traditionally low-tech industries, bolstered by a corporate culture renowned for putting customer service first.
More Essay Examples on Business Rubric. I don’t agree with Dunlap’s view that shareholders are the only constituencies about which corporate directors and executives should be concerned - Case Study “Al Dunlap at Sunbeam” introduction In light of agents’ obligations to principals, managers are supposed act in the best interest of the.
Although the effectiveness of treatments for pathological gamblers is gaining support, only 10% of pathological gamblers seek treatment. Providing treatment via the Internet may lower the thresholds for treatment seeking.
A new telephone and Internet based treatment programme for pathological gamblers is presented in this article, along with a pre-post. Landscapes exposed by glacial retreat provide an ideal natural laboratory to study the processes involved in transforming a highly disturbed, glacially influenced landscape to a stable, diverse ecosystem which supports numerous species and communities.
Case Study “Al Dunlap at Sunbeam” Response to Dunlap’s view of shareholder privacy I don’t agree with Dunlap’s view that shareholders are the only constituencies about which corporate directors and executives should be concerned.Download