Still, without an organic growth in the company, and with increasing compensation for C-suite execs, and with just financial engineering to make the company appear prettier than it is, someone had to foot the bill.
Sure enough, moments ago we found precisely who.
On April 29, 2015, the Board of Directors of The Dow Chemical Company (“Dow” or the “Company”) approved actions to further streamline the organization and optimize the Company’s footprint as a result of the pending separation of a significant portion of Dow’s chlorine value chain. These actions, which will further accelerate Dow’s value growth and productivity targets, will result in a reduction of approximately 1,500 to 1,750 positions across a number of businesses and functions.
And there you have it: stock not following the company's profitability decline due to buybacks, activists happy because stock is gradually rising, and the CEO is delighted because he made 30% more last year.
As for those 1500-1750 workers who just got laid off to make sure all the above could take place, well, they can just daytrade DOW stock. And by trade, we mean frontrun the company's upcoming surge in buybacks.
Read the rest here...