Dell Inc (Nasdaq:DELL) board of directors has long been signalling the market that they are for sale. What was the tell. Look at the composition of board members. The independents number seven members over the age of 65 vs four under the 65 mark.
Nothing against grey hairs. I have a lot of them myself. (they’re all grey while we’re at it) But when you look at the majority of board memberships many are community based, political or national association oriented.
Very little expertise in really growing a company and reaching new heights. The experience profile is “Lets make a Deal”
Kenneth M. Duberstein has a political background going back to Ronald Reagan
Laura C. Conigliaro is a former manager at Goldman Sachs. So it’s all about the wheeling and dealing.
Gerard Johannes Kleisterlee grew up in Phillips and is now Chairman of Vodaphone. Vodaphone is not exactly the leading example of how to do it.
Donald J Carty has a history in aviation which consists in battling fuel costs while trying to leverage capital cost of new aircraft. Lots of wheeling, dealing and card folding.
Klaus S. Luft a former vice chairman of Goldman Sachs Europe. Deal Makers and so on.
Alex J. Mandl, Independent Lead Director had a history at AT&T which relied on its power as an enormous utility. He was the CFO and later the COO and President.
William H Gray an ordained Baptist Minister was a politician and elected to House of Representatives. He is also on board of JP Morgan and cannot say he was against complex derivative strategies.
Thomas W. Luce a retired lawyer, formerly assistant Secretary of Education for Planning, Evaluation and Policy, head of National Math and Science Initiative. So again a political type not a business person builder type.
Last but not least is Ross H. Perot and we all know how the lucky sperm club works.
In short this is not a war-time cabinet. The collective skill set coupled with the collective propensity signals these guys are looking for a way to sell out and not build a business. They will attempt to maximize price on the sale but it still is a sale and not a build.