Just another post blaming the lack of talent. It sounds just as dumb in regards to Conagra.
ConAgra...I did not see that coming.
- Thread starter litespeedhuskerfan
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That is a one time thing due to their purchase of Ralcorp a few years ago that they are selling now at a loss. Revenue from sales actau
This has nothing to do with taxes and everything to do with ConAgra buying Ralcorp (oops), the new CEO, and Jana Partners.
According to KETV, the move is costing $345M but that it will result in $200M in cost savings to be realized by 2018. Does that make financial sense to anyone??
That's why I wondered aloud what the move will cost earlier. This doesn't make a bit of sense, unless corporate greed is the sense.
If HTO is right and they are snaking out of town when their tax breaks end, then CONagra sucks worse than I thought, and I already thought they sucked pretty bad.
You didn't (directly) answer my question however, I can't imagine incentives not having some type - as minimal as it may be - impact. Did Chicago cut them a deal that Nebraska didn't?
The reason ConAgra decided to move is to cut costs, restructure and also to receive tax incentives from the State of Illinois. Also, there is a bigger pool of talent in the Chicago Metropolitan area than the Omaha metropolitan area. That is not a sleight at Nebraska but Chicago is one of the top 5 cities in the United States and just has a bigger population base.
Ricketts should have called a special session to extend the tax benefits or negotiate new incentives in order to make it worth ConAgra's while to keep business operations here in Nebraska. Maybe he was too busy with his death penalty crusade.
GBR!!
The whole amount is to be realized by 2018. Half of it in 2017. Yes, ConAgra needs to cut costs and restructure. The move makes perfect financial sense for a struggling company.
You think the governor didn't go to them and ask what it'd take to keep them here?
The new CEO from Chicago wanted the leadership of the corporation in Chicago. End of story. If tax incentives had anything to do with it, they'd have approached Nebraska and asked. If it was about tax incentives, they'd be moving the entire operation to Chicago. If they announce in a few years that they are doing that, then you can make the argument.
I'm not a big Ricketts fan, but give the man some credit. Do you think he'd just sit by and not give Nebraska a chance to keep a fortune 500 company if there was any chance at all?
It is pretty obvious the new CEO feels there is no way to turn things around without moving the leadership to Chicago, right or wrong. I don't like it, but that's what he apparently thinks. He apparently doesn't care about making the current employees happy. I think he feels he can move everyone to Chicago, and then get new better people in Chicago. Again, don't like it, just saying what I think he thinks.
My guess is the new CEO wanted to move, and approached Chicago to see what they'd do to help it happen. I haven't heard from anyone that the new CEO approached Ricketts/Stothert or anyone in Omaha about increased incentives here. I don't believe Nebraska refused to give them something they wanted, and pretty sure Nebraska wasn't asked. Just want I'm hearing, but could be wrong.
The main reason they are laying people off and moving the headquarters is to cut costs. Businesses do that all of the time. Throw in the tax incentives from the State of Illinois, the bigger talent pool in the city of Chicago and also leadership being closer and it all makes financial sense.
Who knows what Ricketts did but it's egg on his face anytime a Fortune 500 company leaves the state.
GBR!!
It's the CEO with a history of moving business to his hometown and the 7% stockholder wanting to flex.
The city and the state could have done what was needed if they thought they had any chance to keep a Fortune 500 company in its midst. If the tax breaks end and you run as CEO home and screw a lot of people who work hard and didn't have the decision making power that put CAG into poor straits with Ralcorp and some other poor decisions, you're a D bag. Doing it without allowing an opportunity for the city where the company has been for 90 years that you've been I charge of for less than a year makes you a bigger D bag.
Think the company will get a shock when this guy leaves within a couple years at most to bring another company home to Chicago.
The city and the state could have done what was needed if they thought they had any chance to keep a Fortune 500 company in its midst. If the tax breaks end and you run as CEO home and screw a lot of people who work hard and didn't have the decision making power that put CAG into poor straits with Ralcorp and some other poor decisions, you're a D bag. Doing it without allowing an opportunity for the city where the company has been for 90 years that you've been I charge of for less than a year makes you a bigger D bag.
Think the company will get a shock when this guy leaves within a couple years at most to bring another company home to Chicago.
You people do not get it.
Struggling businesses lay people off all of the time in order to cut costs. It's business 101. It was a culmination of things that lead ConAgra out of the State of Nebraska.
GBR!!
I agree. My point is that I don't believe the new CEO had any desire to keep the leadership in Omaha/Nebraska. You can't blame the political leaders if they were not approached and asked to do anything to keep them here. There's no indication that they could have done anything to keep the headquarters here. The new CEO wanted them in Chicago not Omaha, and Chicago apparently gave them what they wanted to the CEO jumped at it.
We will never know if there was any dialogue between the CEO, Ricketts and the State of Nebraska. However it does not look good on a Governor's resume to have a Fortune 500 company leave the state.
Same questions we asked up here when Boeing moved its corporate offices to Chicago from Seattle. We expect there to be some logic to a major decision like that--ain't necessarily so. Could just be a personal preference by the new CEO. But--Much bigger airport. Better access to other major cities, both in the US and internationally. Major banking and financial center. Highly regarded NW and Univ. of Chicago, as well as the highly-rated Illinois-Champagne IT program. Isn't the commodities futures board located in Chicago? As much as I prefer Nebraska, I guess I could see why a major international business might want to move its HQ to Chicago.
Governor Ricketts fired the State Economic Development Chair moments after the Con Agra announcement. His office claimed the decision was unrelated to the Con Agra announcement. I find that hard to believe.
They are laying off 1500 people. I wouldn't think a big talent pool would be an issue.
I hope this CEO does something to land him in federal prison and I can see him someday on American Greed. And I'm not talking easy time in a place like Yankton, I'm talking Lewisburg or Tucson.
My point about this is that the CEO has a track record of moving companies he becomes CEO and the initial appearance is because it's his home and the rest comes as needed for cover.
The people in the Omaha were told he would be honest and up front with them so they would know first. Didn't happen. Lack of integrity. That's my point, then doesn't have integrity. It shows
The people in the Omaha were told he would be honest and up front with them so they would know first. Didn't happen. Lack of integrity. That's my point, then doesn't have integrity. It shows
I believe they do get something but they were going to Chicago regardless. The day they hired Sean Connolly was the day that was decided. My wife works there and she had to, in detail, document her job SOP with the knowledge she was basically telling them how they could outsource her position.
Tops in gangs, Murders, Theft, Rape, TAXES, DEBT, High housing costs, property taxes, INSANE TRAFFIC JAMS, Congested highways, Cold Weather, Liberal Democrats controlled by MAFIA. Millions of illegal Mexicans and their gangs. All voting polls are in Spanish. El Chap o's new home. CHICAGO IS GOING BANKRUPT! !! Pensions Debt Taxes. Risk of Mass Riots.
The CEO's wife and four kids never moved to Omaha, just a guess, but eliminating the weekly commute from Chicago to Omaha and spending more time with the family probably played a big part in the decision.
Private jets fix that problem. Also, if the wife of the CEO is playing a part of this decision, then a lot of lives just got turned upside down for somebody who has nothing to do with the company.
So does the mafia control city government or the cartels? Most of the gang war is limited to a few square blocks of the south side. Yes traffic sucks, but that's what the CTA is for. Has for your Trump-like rant on the good immigrants from Mexico, do some research.
I've lived in Chicago for 13 years, love it. Yes taxes are high, but we have world class muesums and entertainment. Awesome breweries and food. Some of the schools are terrible and some are amazing. I met my wife and am raising two kids in Chicago. So not really understanding the straight up bashing of my home going on here.
Exactly this. I love Chicago. I can see many reasons for wanting to be there, both personal and financial. But the idea that you need to fire 1000 people in order to attract people is asinine. And of the 300 that will get offers to relocate, I would be surprised if 15% accept and are still with ConAgra a year after moving. Forced relocation has a horrible success rate.
The smart money is leaving Chicago and Illinois. Either Chicago and Illinois go bankrupt or the Pension Funds go bankrupt. Chicago is going to double their property taxes next year. Taxes, regulations, and higher building/rent costs alone will cause ConAgra to lose on the move. The only real reason is the CEO wants to be in Chicago and have access to a talent pool that will leave on the drop of a hat for a better job across the street.
Because, if you ever watch American Greed on CNBC, one of the best shows on TV, you will see that sociopathic behavior that causes a fund manager to steal a widow's 401K so he can have one more boat eventually lands him in prison. This behavior usually starts by legally screwing people, then greed takes over and the theft, Ponzi scheme, embezzlement, whatever begins. It appears to me this guy is moving ConAgra out to suit his living arrangement and to make it easier to dismantle the company, or at least hugely downsize it (legally screwing people). His arrogance is heartless and since he did it at his last job, shows a pattern. While I am not a corporation hater, it is a free country and corporations can do what they want (to a degree). But it is also a free country so that when one turd does something heartless for his own convenience, I can hope his established pattern of being a sociopath escalates and bad things happen to him.
Welcome to the world of CEO egos. Chicago along with the state of Illinois have the highest debt. Both should have declared bankruptcy, but the courts won't allow. The state of Michigan courts did but not the Illinois courts. The government and teacher retirement plans are insolvent. People who move there will be paying heavy state income tax, gas tax, and sales taxes. If this move goes through Con Agra will become a small fish in a big pond. In recent years Boeing made the same type of move by it's new CEO to Chicago. Don't people just love CEO egos! Leveraged buyouts too!
Ive lived here for 6 years and I dont love it. Im happy, but I would be happy anywhere. Would prefer to live in Dallas, Denver, Houston, etc.. I too met my wife, have 2 kids and have experienced professional success in Chicago. Unfortunately, I have lived in cities with significantly better cost of living, weather, traffic, people, parking, etc... The Mexican cartel rant is pretty absurd.
Conagra has a state of the art food safety facility in Omaha that they will continue to maintain and use. they are not completely abandoning ship, but they might just be taking the lifeboats into shark infested waters.
The smart money is leaving Chicago??? Lol...you definitely do not know what you are talking about. I'll just leave it at that. Yes, Chicago does have some challenges with it's budget deficit but look at the amount of businesses that have relocated there recently. The economy is diverse in Chicago. It's not like it's Detroit where it relied only on the automotive industry.
GBR!!
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