Mohamed El Erian's value to Under Armour? Hired to board in 2018 to change UA value and bring long term value.
Mohamed was brought in as a big time financial slugger to understand the macroeconomic environment and experience in C-suite roles at Allianz (which under his tenure didn't do much) as well as daily bloomberg blogs and face time on CNBC.
At what point do shareholders reach a point to ask the question. What value does he bring to the company ? What type of financial assets is he aware of shareholders don't that might benefit internally while the company looks to be in bad standings.
Personally, if I'm hired to the board of a company and it's struggling and getting booted from indexes then I wouldn't have the audacity to show up on CNBC and talk economics and think people would take me seriously.
I'm baffled a bit. While UA superstars are getting the axe by performing and costing too much, how are the C-suite board directors not getting asked the same question. Maybe he delivers amazing value but we dont hear about it.
The whole earnings call was attributed to bad macroeconomics. You're telling me Mo's specialty couldn't help mitigate or help mitigate this in the future.
People are buying this gear to get over hardships whether it be family loss, getting laid off. The gear helps provide a lot of people re center themselves to come back better. And this guy seems to be collecting a paycheck to add to his enormous wealth while the company he is supposed to be guiding and helping sits there struggling. And it's not from the gear or clothing. It's directly pinned on brands decision. Just curious about the value and maybe some KPIs to show he is meeting his goals.
Varvatos wasn't bringing value and he bowed out. Maybe it's time to look at others at the high strategic level.