The discussion centering around my previous question about “What would you do if you were running General Motors?” was fun and generated a lot of worthwhile thoughts. So let’s try another one.
Eddie Lampert calls you. He’s like you to take over as CEO of Sears Holdings, the company that resulted from the merger of K-Mart and Sears.
Your compensation plan, should you accept the job, will be highly performance-based. Your base salary will be fairly minimal. But the job provides for significant stock or stock option grants, which are conditional on meeting some fairly stringent financial targets. The package doesn’t really pay off significantly unless you can both (a)grow revenue and profitability significantly, and (b)cause the stock price to increase significantly above its current level, and (c)sustain this performance for 5 years or more.
1)Do you take the job?
2)If so, what actions will you take?
(Disclosure: I’m a Sears Holdings shareholder)