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Friday, February 3, 2012

Sunoco's Evita

Closing a plant and laying off people is a dirty, sad and unpopular bit of business. Sunoco CEO Lynn Elsenhans did that and took the heat for her board and her shareholders. Locally she became the cold hard face of corporate harshness in a tough economy. For that she will be well compensated as she heads out the door.

She could go out singing, "Don't cry from me, Delaware County." And don't worry. We won't.

6 comments:

  1. The most telling thing about the article linked is: "The company also announced plans to repurchase about $400 million of its more than $700 million debt. Sunoco will also repurchase nearly 20 percent of its outstanding common stock." After taking well over $600 million of charges related to closing the refineries, the company stil has enough cash to repurchase $400 million of debt and 20% of its common stock. Distribution and retail are making many millions. The CEO resigns. This is clearly a Board of Directors that is looking over the next year or two to establish a value that will make it a takeover target... Bank on it...

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