Quote:
Originally Posted by chernaudi
If Palmer is at fault, you have to remember he has no ties to the ownership of the company, and AM is now a publicly traded company. Why not just fire him or make him quit/go away? Even if AM was still fully privately held the board or the owner(s) you'd think would have the power to force him out or ask/force him to resign.
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Good point, but he DOES have ties to the company. He is the 4th largest shareholder, salary of £1.2million and 12 month employment contract it looks like. He's like the headcoach of a football team. He IS the guy who is responsible for the CCC rated debt.
But, beside that there are 2 large shareholder groups which account for ~64% of all outstanding shares. These are then followed by Najeeb Al Humaidh and then Andy Palmer. So unless a shareholder rallies one of the larger of the 2 shareholding blocks behind them, then nothing will change if the primary shareholders are disinterested or feel the company is heading the right direction.
It seems that a large shareholder sold a number of shares throughout the breadth of 2019. That person was Najeeb Al Humaidh. He sold ~50million in shares from May to October of 2019. So there is maybe a lack of confidence from the 3rd largest shareholder who held ~20% and now holds 11%.
Clearly, a large shareholder moving that kind of capital out of any firm raises eyebrows. Traditionally they don't leave a firm if they have confidence in leadership. But, confidence is leadership is not a homogenous concept. Clearly, the other investors haven't wanted to force Andy Palmer out...why would that be? No idea, but perhaps to attract other ownership at levels which make the investment attractive to other people with more experience in industrial or manufacturing? And, perhaps someone who has the expertise to see that leadership needs to go.
I suspect Palmer is short lived at Aston. In my humble opinion, as a massive fan of the marquee, I hope he will be sent on gardening leave within the year.