After Dell founder Michael Dell came back as CEO in 2007, he hired former Solectron chief Michael Cannon as president of global operations and former Oracle exec Mark Jarvis as chief marketing officer.
Some $22.8 million in total compensation later, both Cannon and Jarvis will lose their jobs before 2009, the Wall Street Journal reports. Cannon will probably stay with the company in a new role. Jarvis is out.
Sources told the Journal Dell (DELL) could also soon make cuts to “its lower executive ranks.”
Cannon was supposed to streamline Dell manufacturing. Jarvis’s job was get customers to “lust” after Dells.
But Cannon’s plan to outsource PC production took too long and besides, doesn’t take advantage of his on-the-production-line cost custting prowess.
And while Jarvis saved the company lots of money when he cut relationships with some 800 agencies and formed one instead, the WSJ says ” some Dell executives were unhappy about giving up relationships with other ad firms.”
But here’s the real reason the pair are goners: since returning to the company in early 2007, Michael Dell hasn’t been able to do anything to save it.
Despite layoffs, cost-cutting, the outsourcing and the new marketing strategy, the stock is down from a high of $30 to $10.23 today. Somebody has to pay for that and clearly, Michael isn’t ready to see that scapegoat in the mirror.