Disgraced CEO Fired After Multiple Mistakes

Posted by Kyle Matthews on

The South African airline (SAA) has been under tough times but has recently undergone further stress with the unadvised management by its CEO. With high levels of questionable expense and general unintelligent management choices the public enterprises minister stated that there is to be an enquiry. The signals raised are a direct results about the 2015 - 2016 reports which indicate that the CEO was making brash calls. 

 

One of the most interesting calls was the choice to sell two planes to a rival airline and then proceed to lease them out which in the long run was a terrible decision. The move called for the stepping down of the CEO but not before one more poor expense. The ministers and board members heard that the former, disgraced CEO was given in the range R700,000 when he left quickly following the incident. In defence of the gift was one chairman who stated.

 

“The CEO left because we decided not to renew his contract and to end it early. He was paid the remainder of his contract which is five months. We moved as a board and consulted our shareholder on the matter,” he said.

 

Clearly one more misuse of vital resource that will cost the airline significantly and now it is possible that without further interest the airline may default. However there is a silver lining. While the airline hasn’t started the process of searching for a new partner, there have been some interested people. In a  fund-raising event, the minister of board also asked the company to create a list of assets that could be sold. From this the company could remain afloat and save hundreds of South African employees, or even pay for settlements for those at that would be affected by downsizing. 

 

It is possible with future luck the over 1,000 individuals affected will get some sort on payout. Also, coinciding with cost cutting initiatives there would increase the remaining South African employees security and ensure more stable positions.

It is important to always look on the positive outcomes from situations such as these. Of the many affected by poor decisions of the CEO only a fraction will suffer true hard times while the remaining should be ok.

 

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