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About Management Turnover (It's FUD)

About Management Turnover (It's FUD)

Now that they can't hammer Tesla over Model 3 production any more, the "Tesla is gonna die!" narrative has shifted. The mainstays right now:
1. Model 3 demand won't last.
2. Elon Musk is crazy and must be replaced.
3. Tesla's top managers are abandoning ship because the place is so crazy.

I want to address #3. I spent quite a few years working for The Coca-Cola Company, one of the darlings of the Fortune 50. Big company, huge footprint, one of the most recognized trademarks in the world, highly profitable, and STABLE. Everyone with any sense flees Tesla; nobody leaves stable, wonderful Coca-Cola.

FALSE NARRATIVE! Below, find a list of some high level departures that made the news. For every one listed, multiply by a dozen the number of VPs, Sr VPs, and Executive VPs who left to take better paying jobs, were fired, poached, or were victims of palace coups that regularly occur in large companies.

Stable? One of the people on this list chased a colleague of mine around the corporate jet once; she had to lock herself in the bathroom to escape. This is a true story: Once upon a time the then CEO of Coke received a VCR tape in the mail. That tape featured one of the top financial guys — mousy little man, I knew him — dressed up in a chicken suit leading a secretary (nude) on all fours around with a leash as she barked. The executive starring in this little homemade tape suddenly disappeared. One moment he was there, the next he was gone. Rumor had it they checked him into a clinic dedicated to treating sexual disorders. He never came back. Guess he flunked out. I stopped counting how many VP level executives I saw escorted out of the building with their personal belongings in a box. I once mentioned to a VP I was friendly with, who had a reputation for having a roving eye, that my secretary was a knockout. The next day he showed up at my office to "visit." VPs didn't do that, unless you reported to them. My boss always made me come up to the executive floor to see him. BTW, that VP who went visiting, he was fired a few months later for "fooling around." Stuff like that happens at every big company because, as the Muppets' Swedish chef says, "People is people!" And people aren't always ethical and certainly not always smart.

Every company of any size has nuts, incompetents, wackos and overly ambitious job hoppers. It's just the way it is.

The list below is a simple Google search. If I had wanted to spend more time on it, I could have filled in a hundred or so more. But why do it? This makes the point.

Coca-Cola Executive Departures
3/14/2018
Reginald Goins, a co-founder and former president of Coca-Cola Beverages Florida, says he is owed at least $42.8 million after he was fired from his job on March 6. Goins is asking for the money — which he says would represent his equity stake in the company — in a lawsuit filed in Hillsborough County Circuit Court against Coke Florida and the company’s chairman and CEO, Troy Taylor.

1/26/2018
Staples Inc. is bringing on an outgoing Coca-Cola Co. executive to serve as its next chief executive, the company said Friday, the same day that CEO Shira Goodman left the company. J. Alexander “Sandy” Douglas Jr., most recently the president of Coca-Cola North America, will become Staples CEO on April 2, according to a statement from Staples. Coca-Cola had announced in October that Douglas would be retiring from the Atlanta-based beverage giant on March 1. He has spent the past 30 years of his career at Coke.
Read: Forced into retirement, decided to give his old company the finger to take another job.

11/28/2017
NEW DELHI: In what could turn out to be the biggest management churn in global beverage giant Coca-Cola’s history in India, jobs of around 200-250 senior and middle-level executive may be impacted at Hindustan Coca-Cola Beverages (HCCB), the largest bottling arm of th company in India. TOI spoke to several top executive at HCCB who confirmed the development.
Read: Nobody knows what they're doing here and failed miserably.

11/22/2017
ATLANTA – Coca-Cola today announced that Sandy Douglas will retire as president of Coca-Cola North America (CCNA), closing a remarkable three-decade career with the company. He’ll be succeeded by James L. “Jim” Dinkins, a respected Coke leader who currently serves as head of the Minute Maid Business Unit and Chief Retail Sales Officer for CCNA.
Douglas has played a pivotal role in guiding CCNA’s resurgence. The group has grown value in sparkling brands, while introducing a large number of new products across a wide range of beverage categories. CCNA also has successfully launched and grown smaller package choices, such as mini cans.
Read: Probably a normal retirement/succession.

11/17/2017
The former global chief technology officer of Coca-Cola, Alan Boehme, is trading the effervescent world of soda pop for the day-to-day necessities of detergents, deodorants, daily cleansers, diapers and dental hygiene at Procter & Gamble, TechCrunch has learned.
Read: P&G is gonna pay me more!

3/23/2017
With President and COO James Quincey set to take over as CEO of The Coca-Cola Company on May 1, the beverage giant today announced that several other executive moves will also go into effect on the new chief executive’s first day.
Among those who will report directly to Quincey: Francisco Crespo, Coca-Cola’s current President of the Mexico business unit, who will be promoted to Chief Growth Officer, a new position which combines global marketing, customer and commercial leadership, and strategy. Current Vice President of R&D Robert Long will become Chief Innovation Officer. Chief Information Officer Barry Simpson will remain in his role, but will now report directly to the CEO.
Meanwhile, three senior Coca-Cola executives have announced their retirement, including Executive Vice President and Chief Marketing Officer Marcos de Quinto, Senior Vice President and Chief People Officer Ceree Eberly, and Senior Vice President and Chief Public Affairs and Communications Officer Clyde Tuggle.
Read: Here are the winners and losers of the palace coup.

12/9/2016
Coca-Cola announced Friday that Muhtar Kent is stepping down as chief executive officer, and President and COO James Quincey will succeed him, effective May 1.
Kent, who has been at the helm since 2008, will remain chairman. Under his leadership, the company expanded the number of brands by about 1,000 products and announced a bottler refranchising plan.
Read: The board don't like me no more.

9/27/2016
Chubb Ltd.’s Chief Executive Evan G. Greenberg will be leaving Coca-Cola’s board of directors this Saturday, according to the Atlanta soft drink giant.
Greenberg, 61, who has been on Coca-Cola’s board since 2011, said Monday that he is resigning from the company’s board because of increasing demands at his day job. He served on Coke’s audit and finance committees.
Read: Probably on the level.

11/11/2015
Senior Coca-Cola Co. marketing executive Wendy Clark is leaving the beverage giant to head advertising agency DDB Worldwide’s North American business.
Read: I want out.

2/13/2013
Two men who have been synonymous with Coca-Cola for years — one who helmed the beverage giant and the other who protected its secret formula — are leaving the company’s board of directors.
Donald Keough, Coca-Cola’s president and chief operating officer from 1981 to 1993, and James Williams, former chairman and chief executive officer of SunTrust Banks, will not seek re-election at Coca-Cola’s annual meeting in April, the company said Thursday.
Read: We're old now.

11/20/2012
A top Coca-Cola executive who was expected take over the Atlanta-based company’s new North America operations is instead leaving to head Green Mountain Coffee Roasters, a much smaller company specializing in single-serve gourmet coffee and brewing equipment.
Brian Kelley, who in September was named to become president and chief operating officer of Coca-Cola Refreshments, will become president and chief executive officer of Waterbury, Vt.-based Green Mountain, starting in December.
Read: They told me to look for other opportunities OR I don't want your stinking job! I want out!

12/6/2007
In a surprise move, the chief executive of The Coca-Cola Co. will step down after four years as head of the world's largest beverage maker and be succeeded by his second-in-command, the company said Thursday.
The Atlanta-based company said in a statement that Neville Isdell, 64, will step down as CEO on July 1, and will be succeeded by the company's president and chief operating officer, Muhtar Kent, 55.
Read: Oops, the Board wants me out. (I knew Neville btw, nice enough guy for a button down shark in a suit type)

6/9/2004
Ending five months of turmoil, corporate infighting and swirling rumors, Coca-Cola Co. this morning announced to its employees that its president
and chief operating officer, Steven Heyer, is leaving the company. Mr. Heyer's departure comes just one week after the man who beat him out for the top job, E. Neville Isdell, took over as chairman-CEO.
Read: You lost, off with your head!

Something to remember the next time CNBC or Business Insider goes off about the "instability" at Tesla. It's all garbage.

TeslaTap.com | 14. syyskuu 2018

@dmm1240 - Well stated! I'd say the poaching of talent in tech companies is even greater than "bad behavior" issues, although I'm sure tech companies have their share. GE that yearly fired 10% of their workforce - the bottom 10% in annual reviews!

For anyone here in the valley, Tesla's few departures are much to do about nothing, especially for a company with > 30,000 employees.

achilles992000 | 14. syyskuu 2018

Elons tweets and interviews made me unhappy and i don't even work there.

i thought about selling the Model S so i could be free from the Tesla drama.

thankfully he hasn't tweeted or done any interviews this week and i am happy to drive my Model S once again.

Mike83 | 14. syyskuu 2018

@dmm1240 well said. FUD is adolescent. Elon does amazing stuff and works hard and I like he doesn't take BS. Who cares what the shorts say or think. They are anti-American losers.

TabascoGuy | 14. syyskuu 2018

@dmm1240 good perspective. My only suggestion would be to change the word Turmoil to Turnover in the title. Turmoil sounds a bit FUDish while Turnover is more to the point you are making.

Tesla-David | 14. syyskuu 2018

Thanks @dmm1240 for clearly underscoring the FUD reporting.I am sick of the FUD articles.

Tropopause | 16. syyskuu 2018

dmm1240- The narrative is also changing to:

Tesla Semi is delayed. The competition will overtake Tesla Semi due to delays.

I saw the first headlines of this FUD the other day. They never stop finding excuses! The pattern is so predictable now, I half laugh, half sigh, but then I smile because there's no stopping Tesla at this point!

Go Tesla!

sosmerc | 16. syyskuu 2018

"overtake Tesla"? That will be the day.....and even if it were to happen that would make Elon happy as he would be closer to meeting his goal of EV dominance vs. ICE.