NetJets CEO leaves, may affect Buffett succession

[foxtrott-romeo-a-x]

Hopefully the used ACmarket will soon pick up so a major revenue source of Netjets might stabilize...

Here the details:


* NetJets co-founder Santulli steps down
* Had been considered candidate to run Berkshire Hathaway

NetJets has not been immune from the recession, though. In the first quarter, NetJets had a $96 million pretax loss, hurt by $55 million of aircraft writedowns, an 80 percent decline in aircraft sales, and fewer flight revenue hours.

UPDATE 2-NetJets CEO leaves, may affect Buffett succession | Industries | Financial Services & Real Estate | Reuters (http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0417370320090804?pageNumber=2&virtualBrandChannel=0)


NetJets “has got to be the worst business in the Berkshire portfolio right now, or close to it,” said Jeff Matthews (http://search.bloomberg.com/search?q=Jeff+Matthews&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), author of “Pilgrimage to Warren Buffett’s Omaha” and founder of hedge fund Ram Partners LP. “It’s not necessarily Santulli’s fault. NetJets must be sucking wind right now.”

Buffett Has Sokol Run NetJets, Fueling Succession Speculation - Bloomberg.com (http://www.bloomberg.com/apps/news?pid=20601103&sid=afqLRK97n6vE)

[pt-wind]

Went immediately
Spending more time with the family
becoming a 'consultant'
not able to nominate his own successor from within NetJets
= Fired!

So, exactly why?

WB had him on the short list for his own replacement - now he's gone

You don't dismiss someone like that (and remember he started the whole frax thing), just like that....Sounds like there was a BIG disagreement

[doubleu-anker]

Fired, or told WB to stick it?

[Holyman]

He was never a candidate for the succession, that was something he would like people to believe....but if you take a closer look at wb selection of candidates you can see he was not part of that inner circle...

My guess for his departure: he wanted more money to finance the turnaround of netjets to an more exclusive club with medium to large aircraft only (due to the upcomming taxi market struggle)..

Together with the lousy management of the downturn (not foreseen, to slow to react, to little to late in all) was the perfect storm.

[south coast]

In a funny sort of way I now have more respect for RS than I did while he was running the company.

The reason the people at the top are paid so much is because they MUST take responsibility for the good times as well as the bad and I believe he has only done, what politicians have perfected, the,

' I am stepping down with immediate effect to spend more time with my family...'

Their was 'blood' on his hands and I guess he had to go.

I hope his replacement is not so dictatorial and allows local senior managers to manage.

Good luck to the new guy.