The CEOs on the President’s Job Council “must know what they’re doing, right?” asks Bill Gunderson, president of Gunderson Capital Management Inc. and host of the “Positively Wall Street,” radio show in San Diego. Gunderson says a handful of the CEOs the President chose for the council are not representative of what the country needs right now.
The President met with his Jobs Council in Durham, North Carolina Monday amidst much hoopla. But, Gunderson points out that six of the CEOs have been slashing jobs the last few years.
For instance: General Electric CEO Jeff Immelt, chair of the council, has slashed GE’s job rolls by 20 percent since 2000; Intel, led by council member Paul Ottellini, shed 21 percent of its U.S. workforce in the last five years. GE, Gunderson notes, “returned minus 6.6 percent to its investors over the last ten years.”
What’s Citigroup doing in there?
Of other firms on the council, he says, “Southwest may be a good airline, but it lost 4 percent a year for the last ten years. Eastmann Kodak has been diving 20 percent a year for ten years. Citigroup recieved one of the biggest bailouts in history. Not sure what they’re even doing in there.”
Not only that, “The council members who used to be CEOs at AOL and Time Warner made business history by engineering the worst merger in history.”
We should note in former AOL CEO Steve Case’s favor that he has actively invested in and supported numerous startups since leaving AOL.
Still, Gunderson has a point. President Obama has often taken advice from the same Wall Street honchos who played roles in getting us into the economic mess of the last several years. The advice he’s received and the actions he’s taken may have prevented economic meltdown, but they have not given the economy the real boost it needs, nor created nearly enough jobs.
A few firms Gunderson would prefer to see on the council?
How about Autozone (AZO) or Apple (AAPL) or Priceline (PCLN), all rated “A” in his proprietary system, he asks.
Lots of good companies, good people, but not on the council
He tells TechJournalsouth, “I’ve rated Quality Systems Inc. as one of the Best Stocks Now in the country. Over the last ten years, it has returned an average or 38.4% per year to its owners. Including 47.4 in 2008, when the market went down 38 percent. Led by one of America’s best CEO’s, Steven Plochocki, they are decreasing the cost of healthcare by automating records. Over the last five years, they have gone from 661 to 2000 employees.”
He adds, “At Tractor Supply, CEO Jim Wright is hiring 1000 people a year to work in his stores, many selling organic farm supplies to city slickers. His stock is returning 41 percent a year in growth and dividends for the last 10 years. Harold Hamm runs Continental Resources, an oil and gas exploration and production company. Over the last three years, Continental has hired 15,000 people in North Dakota. They are looking for more.”
Gunderson says that of the 2,700 stocks he covers, 10 percent are investment grade.
“That’s a lot of good people from good companies, but none is on the president’s job commission.
See also: Bill Gunderson’s Instablog
- CEO confidence up in April
- Nearly 40 percent of CEOs say they expect to hire
- Inc. 500 CEOs far more active on social media than Fortune 500 CEOs (infographic)
- AeA study: tech job growth slows
- Intersouth Partner added to Atlanta CEO Council
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Tags: AOL, Apple Inc., Autozone, Bill Gunderson, CEOs on President's Job Commission, Continental Resources, Durham, Eastman Kodak, GE, Gunderson Capital Management, Harold Hamm, Intel, Jeff Immelt, Jim Wright, Jobs Commission needs better CEOs, NC, Paul Ottellini, President's Job Commission CEOs, Priceline, Quality Systems, Southwest Airlines, Steve Case, Steven Plochocki, Time Warner, Tractor Supply