Sunday, 8 June 2014

What Our Commentators Think

Cassandra’s readers have had a lot to say since CSC’s full year results were published so we thought a summary of them would help.

: The share price is about where it was in March with an upward trend the last few weeks after a drop in value in the intervening period. At c.o.b. Friday 6th June it was $63.58. This seems to indicate the market is happy with the results. 

: More reductions in people and offshoring have been announced. Yet again CSC is announcing more cost and people reductions after reporting that is business rebuild is on track. Has the company lost the ability to forecast its business properly? How many more cost reductions programmes and staff reductions are yet to be announced?

: These people reductions seem to be in chaos across the globe as staff report confusion and lack of information as well as lack of consistency. Perhaps this is because HR itself has been through so many changes of leadership that no one is actually leading this sensitive task.
Late editorial addition on 19th June. We see a comment that an HR VP is suing CSC. Also some readers may recall this post from 2011 in which another HR VP goes missing under mysterious circumstances. Does explain why; according to employees, HR in many areas seems to be losing its grip?

: Sales continue to trend down ward with only a few crumbs of business coming CSC's way via tie-ins with the Big Boys.

: The Washington Business press has featured articles about issues within the company and its people management practises. Read more here 

: One commentator says that CSC is like IBM as shown in an article from Forbes Magazine. We can only but agree as the reported view of Cassandra these past few years is that company is hollowing itself out, asset stripping, and using all the opportunities presented by disposals and take overs to show its finances in the best light. Read more here


: The CEO of Bizcloud, Vahid Razavi is very upset with CSC as per these quotes "CSC has poached our Intellectual Property and they even filed a claim to invalidate our trademark based on meritless accusations that we are not in the cloud computing business,"
"We invite CSC BizCloud enterprise customers and partners from any geographic area, including the US, Australia, Europe and UK, and the public bodies such as NHS England, the US Federal Government and the GSA, to at least consider all options, including the genuine BizCloud offerings, before giving their next cloud computing project to CSC -- a corporation known for its unethical and questionable business practices outside and within the IT sector, including rendition flights of torture and its failed NHS contract,"
Read the full article here  and a companion article here.


: CSC’s last SEC filing was said by one commentator to be ‘as clear as mud’ and that They give so much information, repeated several times in the whole package, that it is difficult to sort the interesting from the dross. I did not see anything earth-shattering, although I could have missed something. But the way they have managed pension fund obligations is smart.’
Read the SEC filing here.
Why the obscure manner in which figures are reported, summed up and used in different ways? Has the CSC something to hide?

Our conclusion is that the financial institutions who hold CSC stock, and by our count two of them own about 35%, are only interested in ramping up the share price and getting a quick profit before handing this hollowed shell on to some dummies who do not know better.

Some might say this is a cynical thing to say. But just look at the behaviour of the banking fraternity who got the tax payer to bail out their hollowed shells when the global financial crisis hit. And by the way they are at it again via private companies that hold toxic debt bolstered by loans from the banks who do not have to ask too many questions of a private business or report the details to financial authorities.

As Warren Buffet says “Only when the tide goes out do you discover who's been swimming naked.”

79 comments:

Anonymous said...

The FY2014 Proxy Statement should be issued this month. That will disclose the remuneration Mike Lawrie and his top acolytes received for their "achievements".

Anonymous said...

Changes at CSC cover a myriad of topics but clearly most appear to reflect a dysfunctional managerial mentality bent on profit and profit without regard to ethics or best business practices; that is, they reflect expedients and other stunts to spike the stock. The upper echelon has opened a campaign against the employees with support of the corporate ideologues, the true believers who will implement whatever Lawrie demands of them, no questions asked.
And let’s stop giving credence to a performance appraisal process that’s a total farce.

Anonymous said...

How controversial - a management team focusing on profits!!

I know, why not have a management team that makes work fun for all. Make a loss. Then we will see how long company lasts.

You moaners on this site need to get a life!

Anonymous said...

Hey thanks for that constructive feedback - it really helps. Seems to me you may be well qualified to sit in your ivory tower, counting beans and surveying your diminishing empire through rose tinted spectacles. Way to go buddy - now get off this site.

Anonymous said...

I have no problem at all with a management team that focuses on profit, provided the profit is sustainable in the longer term. I wish we had that, but with Lawrie and his management team we do not. Go talk to the customers who are telling us not to bother bidding on our own re-competes because of our inability and/or unwillingness to delievr against our current contractual commiments. Maybe you will see sense after that.

Anonymous said...

Lawrie and his management team will be gone in 6 months. Just look at Mikey's track record at his previous companies; boost the share price by short-term expedients, make a pile of money, then get out and move on just before reality strikes.

Anonymous said...

Well CSC Executive management is at it again. Let see how we can scrape by THIS quarter. Lets ask employees to take "voluntary vacation". That will make our number look better.

If employee vacation is being used as a Profit Center, you're screwed. You also look like idiots.

Anonymous said...

Makes u wonder if the board really thought it through before they hired him

Anonymous said...

Employee vacaction and unpaid leave, contractors forced to take holiday has been going on at CSC globally for over 10 years. Tell us something we do not know... or do not bother posting at all.

Anonymous said...

Who said anything about unpaid leave ... or contractors for that matter? The "employees" have been asked to take a few days vacation in the next few weeks to make things appear better.

Anonymous said...

Who wants to work for a company where they ask (read tell) people to take holiday for the books... how rubbish is that. Then in the UK making 750 more people redundant. Wonder how many of those will take 2 days out of fear.. they get pushed anyway..

Anonymous said...

... and then have to pay back the holidays from your redundancy package.

Anonymous said...

The Non-Executive Directors who chose Lawrie are largely the same bunch of incapables who selected Laphen as Chairman, President & CEO lauding his "strategic vision", then allowed his total lack of vision and business understanding to almost destroy CSC. The Board does not think. It just says "Yes, Mike" to Lawrie as it did with Laphen.

Anonymous said...

Get a hobby where you can 'try' to be constructive.... we have been asked for the last 4 years to take holidays early. For all the entries on this site and the millions of words, spat out by the anonymous 30-60 (inc ME)..... I dont think we will see ML disappear over any horizon soon, hes got rid of spare capacity (People - Yes OK), Stabalized the business (See Share Price)....pssd off everyone (And?).... kept 70k staff in a job, when CSC almost went to the wall...... Lifes not Mills & Boon, its hard everywhere IBM, Walmart, HP, Sony etc etc... Please reply in less than 100 words to keep CSC's WAN costs down :-)

Anonymous said...

Cassandra - this board is turning too negative. I visit to share information and to get information since the new "Transparent" CSC management team is blowing smoke and not giving the employees or stockholders accurate and timely information. Now it seems that contributors are just attacking one another rather than sharing information and insight. Too bad. This was about the only place that we could get the unvarnished truth.

Anonymous said...

The preponderance of negative remarks underscores the issues and deficiencies associated with CSC management. The issue isn't profit--obviously any company has to make a profit for its survival--but the overall policies and corporate behavior that can have damaging consequences long-term. It might be useful if people read the article regarding IBM's issues which appear to parallel what's happening at CSC: http://www.forbes.com/sites/stevedenning/2014/05/30/why-ibm-is-in-decline/
Let's not forget Lawrie's roots.

Anonymous said...

If I wanted to read "positive stuff" I'd be looking at C3 rather than this page. However, this page is not a CSC hype, sorry, "sales and marketing" board and we come here to hear and discuss the awful truth that many of us know but cannot speak of openly.

As for Anonymous 12th June 09:21, go on say it, "you're lucky to have a job" - that's such a CSC management catch phrase, I'm surprised you didn't use it. Maybe some of us remember what its like to work for a company that doesn't just look at you as an inconvenient number of dollars on a spreadsheet and actually measures you by more realistic attributes like what you can do.

Anonymous said...

The UK Cyber MSS folks are all having to reapply for their jobs, When this was told to them the other week, their illustrious leader told them categorically in an email that it was nothing to do with headcount reduction, then Sanjiv Gossain told everyone that the Cyber MSS slaughter WAS part of the headcount reduction. You'd think they'd get their lies straight with each other wouldn't you, but even that level of organisation is beyond these clowns.

Anonymous said...

Let me guess, UKEF, UNITE, and whoever else that is supposed to represent these poor unfortunate employees were in the bar having a drink when this happened?

Anonymous said...

Management (I dont think so)...... but you are so (sweet and) innocent.... when the company did not consider inconvenient numbers like dollars, utilisation, headcount etc.... it almost went down the pan. I guess the collapse of the Iron Curtain must have been such a disappointment for you Comrade..!!.

Busy Bee said...

Heh Folks, Can we keep the snippy comments down please. Nothing personal or derogatory.
So far the vast majority of comments are polite and even handed. So let's keep it that way.
It might help if you count to twenty and reread what you are writing before pushing the send button. I know doing so has help me avoid causing offence. With a little mnore thought you can make your point without causing offence.
However, any more personal comments will be deleted.

Anonymous said...

I think that personal and emotive comments are a manifestation of various levels of cognitive dissonance happening. We all care about our work, and we all want to believe that CSC and it's command chain would "feel" the same way in return. For some the will to "believe" is much stronger than others, and when this is challenged by Company action as well as the overwhelming opinion of others that imbalance has to reconcile somehow... Projecting the result out here in a way is much better than projecting it towards Family and such. This site provides a service in more ways than the founder of it may have expected...

Anonymous said...

At least the redundancies are being dragged out for months... I thought would be gone by now!

Also no dates on the horizon. Every pay day is a bonus.

This board is great by the way and good to see Busy Bee buzz in to keep it as level headed as possible for such an emotive and poor employee that CSC is.

Anonymous said...

Can we all stop talking about "management" and "leadership"? The current crowd couldn't lead flies to fresh horse droppings . . .

Anonymous said...

Well Said. At least one positive comment. It's one thing criticising from our comfortable chairs. But it is entirely another things trying to revive a sinking ship. oh yes, we all know CSC was all but bankrupt when ML took the charge.

Anonymous said...

UK redundancies
MSS - 300 to be cut
Accounts - 20
Sales - 30
PM - 45
Architecture 20
Account 45
HR 10
Operations 60
Finance 10
Cloud 15

Anonymous said...

Thanks for the info. Do you know how the split by group was derived? Is there some science behind it or is it simply x% across the board? I say this because the cuts in PM, Sales and Cloud surprise me a bit.

Anonymous said...

Moving more PM and Cloud to CSC India I expect and also vendors do more.

Anonymous said...

300 from MSS?! That's all of it surely!

Looks like Cyber hasn't sold well in the UK...

Anonymous said...

Do the above figures add up to 750?

Anonymous said...

Did Sanjiv Gossain's email say that architecture would be affected?

Anonymous said...

"You don't make a fat man thin by cutting off his legs". Let's also add that we are also getting thinner by zombifying. No legs and no brain keep CSC share price ahead!

Anonymous said...

Before they care how much you know
you need them to know how much you care

try it Mikey

Anonymous said...

The fact does not add up to 750 makes it look realistic.. they start high then union and dept hards argue them down...I thought MSS was around 1000 people... so if going to India etc seems fair. I guess will be confirmed ref numbers soon enough.

Anonymous said...

ML is not reviving a sunken ship, he is only disguising it so that it resembles a submarine. When some people request "positive and constructive" comments I can only see that someone doesn't accept criticism and tries to defuse the obvious discontent with the current situation where the weakest link has to pay the constant errors of those in charge. We are not hired to be advisors, first of all because nobody will listen to us, but if ML wants a really constructive advice it would be "stop the layoffs at the working level" and start the layoffs at middle management levels. He really eliminated some layers, but I for example I do still report to two managers (one of them is an obvious redundancy) and I know it is the common rule for almost everyone. They can lay me off, I'd be happy about it, but laying off the actual working BILLING force is a terrible mistake. ML is making a huge mistake asking those reduntant middle level managers to pick up people to layoff...because they are the actual redundancy, and they will never be honest and say that they are the ones not bringing any profit.

Anonymous said...

Mike will stay as long as possible till there's something he can sell from CSC to keep the CSC share looking good. Then the company will be just empty. It will take several years for that. Just look over past years to compare S&P 500 face to CSC, Mike is selling the business but share is still under performing the average. More offshore ? pfff what a strategy ! He's trying to follow Big 5 companies with just 15 years late. Looking for cloud 5 years after major players. Mike definitively doesn't worth his millions.

Anonymous said...

Busy Bee,

I've done some research on the actual reduction in the size of the CSC workforce since ML arrived.

Feel free to post as a comment here or use the data for a standalone post. Just trying to do my bit to support and contribute.

Ever shrinking CSC

Date No of employees
March 2012 98,000
March 2013 90,000
June 2013 87,000
Sept 2013 81,000
Jan 2014 80,000
March 2014 79,000

Sources:
http://www.bizjournals.com/washington/blog/fedbiz_daily/2013/11/csc-shed-9000-jobs-since-march-with.html?page=all

http://assets1.csc.com/about_us/downloads/CSC_Profile_Graphic.pdf


As well as cutting and cutting did you notice there is a new Comms man on the scene?

http://www.csc.com/newsroom/press_releases/111309-csc_names_gary_stockman_chief_marketing_and_communications_officer

I love the second sentence.

"Stockman will be responsible for establishing and leading a global, integrated marketing communications group and advancing the company’s brand, value proposition and competitive position with the company’s key stakeholders. He will report to CSC President and Chief Executive Officer Mike Lawrie."

Responsible for the key stakeholders (board and key stockholders) and not the rest - employees, customers, suppliers, communities! Also why a new message now - oh because the content of the message is rubbish and has to be dressed up.

Keep up the good work!

Anonymous said...

For UK based people this makes interesting reading:- http://www.computerweekly.com/blogs/outsourcing/2014/06/could-csc-appointments-be-a-new-era-in-the-uk-for-a-sleeping-giant.html

Anonymous said...

From what I heard on the jungle drums (the official comms being non-existent), the "up to 750" isnt based on detailed analysis and forethought so you wouldnt expect the actuals to add up to that. The 750 is a cautious overestimate to put on the formal paperwork they need to file with the UK gov whenever they launch redundancies. If they underestimated they'd need to file more paperwork.

Anonymous said...

The CSC leadership might benefit from this webinar
http://learn.gotomeeting.com/061714-NA-G2MC-Collab-WBRARC-S?ID=70150000000ZxgT

Anonymous said...

I must say, as a recent career changer as a result of the CSC cost take out plan, the euphemism used to refer to how we are funding ML's next bonus package, it is clear the CSC of today is not the CSC of my 20+ years. As one that is proud of those years of service to loyal clients it makes me sad to see what my company is devolving into.

Selling all your assets and dismissing staff to incentivize others to improve performance in not a strategic policy, it is suicide. Just look at what happened with old Chainsaw Al the darling of cost cutters in MBA programs around the world.

The only strategic direction visible is self destruction.

Anonymous said...

It will make no difference however good Sanjiv Gossain may be. Like his predecessor, he has no authority, nor decision-making ability. He is there to execute decisions made in Falls Church. Full stop.

Anonymous said...

Guys, this is just Phase 1 of the cuts, the mandate for cuts stretches to Dec 14. Gossain refers to this as Phase 1 too in his latest email.
There is more cuts after this. This is not speculation or fear mongering. Its facts.

Dont believe me, go ask Gossain or the union reps. The only reason this hasnt got much notice is because they dont want to demoralise the whole of the UK in one go, including the ones who are NOT presently at risk.

Anonymous said...

That computer weekly article is interesting - I disagree with them that any individuals placed in those roles can have a positive effect. Nobody below Layer 2 is allowed to have any effect unless it meets with the party line.

Other than being the face on the emails, the rubbish spewing forth will remain the same. They won't be allowed to deviate from the one true path.

But then again, how are Computer Weekly to know that, CSC continues with a tight EMCON policy.

Anonymous said...

My take, for what it is worth.

The issue I have is the open cronyism and crude self interest exhibited by our leadership. The world we are in is one where CSC tells the markets we have exceeded our targets in many regards or just fallen shy. As a workforce, however, we are told, in one of the most crass emails I have seen, that the business missed its targets and so we must be expected to be judged to have done so as well, or, at best, to have met them. We are also told that we are to be judged not by our efforts, but by overall results, a statement at odds with most norms and, of course, the concept of the bell curve. So be it, judge us by results, but judge us ALL by our results.

It then seems that most regions, with a couple of exceptions, have failed to meet their targets with the consequence that there will be few, if any pay rises or bonus payments, though a bonanza for those with share options as the share price bounces on what CSC announces to the world rather than the workforce. Perversely for a business which consideres itself to have missed expectations, the corporate layer is said to have met its targets triggering bonus payments. How can the layer dependent on the business as a whole and which set the goals for the business possibly be considered to have met its financial targets when the rest of the business did not, unless those targets were notably more lax, logically they might be the sum of the targets for the regions/units, but it seems not. These people, of course, are also those most likely to benefit from the rising share price (further supported by not paying most people a bonus). To add insult to the injury of the hundreds of people for whom a few thousand dollars of bonus might make a real difference to their families and lives, those pocketing hundreds of thousands of dollar ask us, without shame, to take holidays in a way that supports their financial planning and have the gall to describe this as 'an opportunity to help the business'. Some opportunity ... Some business.

I would be interested in the view from those who are veterans (an area where CSC does still have a decent record): if a squad fails to meet its mission parameters or objectives and is stated not to have met objectives, how can the officers who direct them be considered to have met expectations? Yet that is precisely the situation that has arisen - teams and regions have been deemed to fail, but their leaders have not. That is not leadership, it's looting.

As to the apologists for CSC, to those who do the hard work and offer corporate loyalty, I respect your position and hope your efforts are rewarded accordingly, but as an employee of many years standing who is considered even this year to have met expectations (my lowest ever ranking) I doubt they will be. Should those commentators be L2, however, then they have little credibility in offering comment given their blatantly self serving (and short term) actions.

All that said, this has happened, those aggrieved have options open to them, one of which is acquiescence, I have decided to accept the lack of loyalty the business has towards me and appreciate that I owe it precisely the same.

Anonymous said...

Sleeping Giant, lol, no that's a dead bear carcass.

Anonymous said...

And to you Sir, I raise my glass. Perfectly put and spot on. They will get found out one day, but what state the company will be in by then is anyone's guess. What we can be sure of is that the staff's role's will be continually at risk, with disorganisation and a lack of resources rife throughout.

Best of luck everyone.

Anonymous said...

I heard a rumour that UK redundancies they are now going to impose the legal minimum which is 1 week for every year capped at £464 a week for each year. http://www.adviceguide.org.uk/wales/work_w/work_work_comes_to_an_end_e/work_redundancy_e/redundancy_pay.htm

I do not believe this but is what I heard. Unions would not agree...

Anonymous said...

The best post by far on this forum, hats off!!

Anonymous said...

Lets face it, for the old cronies at L2 and above, this represents possibly the last major challenge in their lives and more than likely if executed properly will set them up for whatever remains of their life.

Its in their interests to loot CSC for what its worth, Mikey must be well into his 60's, avg CEO reign is about 3-4 years, he wont be wanting to see another one after this.

Anonymous said...

In my opinion it is unlikely.

They would have to enter into negotiation to change all of the UK employment contracts.

Anonymous said...

The FAQ for the UKI FY15 programme recently posted on C3 clearly states uncapped for those on CSC standard T&Cs.

Anonymous said...

For what it's worth, someone had to go through the door first....

http://www.bizjournals.com/washington/blog/fedbiz_daily/2014/06/former-executive-sues-csc-over-severance-pay.html

It will be interesting to see how this progresses. Will it fizzle out or embolden others to act too?

Anonymous said...

I heard this as well.

Anonymous said...

I left CSC back in April after waiting for VR for 3 years on and off but they still wouldn't let me go. In theory I would have got 24 Months as the Account I was on still had good terms. However, this could change at any time and I've heard the Post office account people's Redundancy terms have been cap at 18 months pay now that they 10 years with CSC has passed. My account is 10 years old in November so there have been rumours about this for a while especially when our account manager mentioned last year that CSC wanted to avoid large Payments in future, whatever that meant. We did have people on the account with csc terms and they were always much more worried about being pushed out of the door as it is the statutory minimum. I saw that this would happen to me so decide to jump to a growning company in the city of London which pays good salarys, and bonus, plus you feel you have a future which is the first time I've felt this since the 9 years I was with CSC. Certainly form day one we were told they wanted to offshore much of our work so they never kept I a secret but they promised a future elsewhere with CSC which for me never materialised. In the end most people not at the top are best out of CSC and propably most outsource type companies. My partner works for HP which isn't much better.

Anonymous said...

We are trained to negotiate in the purple zone. Be polite to the individual but hard and hungry about the money. CSC management cut off my bonus, too - and as trained by them I'm going to cut my performance. Tit for tat. All those stupid motivation speeches and mails are a waste of time.

Anonymous said...

CSC has no moral nor values. They want to force people to resign and avoid paying the peanuts compensation the law obligues them to. This company has to brag about what it doesn't have: CLEAR values. I wish customers learn that according to CSC 30% of their workforce is under rated.Would you let a bad employee touch your multimillion infrastucture?would you pay a premium rate for a lousy employee? I don't say employees are lousy, it's CSCs bell curve and mgmt who does.

Anonymous said...

People getting booted out any day now........

Anonymous said...

It's usually the companies with no values or ethics which need to shout out loud about them

Anonymous said...

Almost there........bonus time for Mike

Computer Sciences Corporation
NYSE: CSC - Jun 23 4:03 PM ET
64.070.05 (0.08%)

Anonymous said...

If the cap the redundancy pay at £464 per week for each year of service, no one will take it. I thought the whole appeal of reduncancy was to take the money and run...at least it was for me.

Anonymous said...

Another article from the Washington Business Journal noting the step related to employees being asked to take "voluntary" vacation to bolster profitability:

http://www.bizjournals.com/washington/blog/fedbiz_daily/2014/06/csc-calls-upon-employees-and-their-vacation-time.html?page=all

On an indirectly related note has anyone else sticking it out as an employee noticed that by this time in previous years CSC had sent numerous communications about the Employee Engagement Survey but this year there has been not a word?

Anonymous said...


Considering that there are potentially 750 employees being made redundant in the UK, and this only being phase 1. Does anyone know whether the Strand office is closing for CSC employees? I can't see how CSC can continue to have 2 offices in the north west! BAE have already moved into the ground floor and believe they also want the first floor. Plenty of rumours flying about but does anyone know if this is fact???

Anonymous said...

The plan is to TUPE all the CSC staff working on the BAE account back over to BAE. BAE are themselves an IT Service Provider, they have won many new contracts lately.

Anonymous said...

Who Knew? Tom Holt worked at CSC?
http://www.amazon.com/The-Outsorcerers-Apprentice-Tom-Holt/dp/0316368792

Anonymous said...

As another quarterly report is coming due, CSC is scrambling with the minutiae to attempt to be strategic. The program directing vacations to enhance the profitability is another short term farce showing the depths, or lack of in our strategic thinking capacity. It just is not happening for CSC. Two plus years into the strategic transformation and the best headlines are about layoffs. Talk is about a number of “strategic initiatives” but none are successful. Two highly touted were Project ROSE and the Integrated Delivery Center program. Project ROSE was to deliver a commercially viable virtual desktop solution to market. To date, millions of dollars were spent in hardware, software, and labor, chasing the newly minted product delivery process. The result, a decision that this was probably not the right path to have followed. Had it been as successful as originally cited, the cost of providing desktops to users would be cut approximately 20% in the long term. Given the cost of a desktop runs about one half of one percent of salary, this was never going to make a significant impact to profitability or long term sustainability. The IDC program, providing two low cost centers in North America, one supporting commercial clients in Pittsburg PA, one supporting government clients in Bossier City LA, is struggling to provide strategic impacts. CSC’s commercial operations are convinced forcing all workers to work remotely, assuming all costs for facilities, network connections, and telecommunications will always outweigh the advantages of a co-located group of employees with traditional facilities support costs. The public sector has adopted in name only the line of service model with matrixed support to accounts to make the IDC concept viable. Until this occurs it is not a co-located group with similar skill sets to leverage across multiple clients, totally defeating the overall concept. The plan in Bossier City is to ramp up to 800 plus personnel over four years with salaries reduced approximately 15% against the current model. In real terms this is approximately one percent of the overall CSC workforce. Coupling those savings with the head count it is difficult to ever see how this initiative could have been called strategic.

Anonymous said...

Any UK redundancy news please Casandra?

Anyone have any updates as in real facts?

Anonymous said...

Bravo a wonderful post that sums up the feelings I am sure of many of the coal face workers in CSC.

Anonymous said...

"At risk" and "not at risk" calls took place last Thursday - they used the words 'provisionally safe' during the call. The people at risk will now have another call which will start the clock for their 30 day count down.

Anonymous said...

Don't worry folks, whilst you've all done really, really badly, can't have a pay rise and have to be got rid off, he's done exceptionally well and the board are rewarding him on the 15th of July with "a special, off-cycle performance based restricted stock unit award" of 2.5 million dollars.

http://biz.yahoo.com/e/140630/csc8-k.html

Anonymous said...

The CSC 2014 proxy statement is available for reading...http://www.sec.gov/Archives/edgar/data/23082/000120677414002027/csc_def14a.htm . Seems Mr Lawrie is doing ok, although he got a lot less than in 2013.

see also: http://www.bizjournals.com/washington/blog/fedbiz_daily/2014/06/heres-what-csc-ceo-mike-lawrie-raked-in-for-the.html

The thing that I find most upsetting though is this comment in proxy statement:

" Fiscal 2014 Compensation. Other than Mr. Zolet, none of our NEOs’ base salaries changed during Fiscal 2014. Mr. Zolet’s base salary was increased from $475,000 to $550,000 on June 22, 2013, in order to bring his base salary (which was previously below the market 25th percentile level) closer to the market median level."

All the worker bees are constantly at risk of being made redundant, but mr Zolet apparently was underpaid.

Anonymous said...

Can't take credit for this, a friend said it:
CLEAR values: = Compensate Lawrie Even After Riffs

Anonymous said...

Cleanup Lawrie Employees Are Redundant

Anonymous said...

Ooops CSC fails to pay overtime to US sysadmins and they are taking them to court:

http://www.csclawsuit.com/

Take a look at that site, if you are US based, you might be able to get in on the payday...

Apparently:

"Such employment law violation allegations are not new to CSC, the law firms said. The company was the defendant in a similar lawsuit, Giannetto v. Computer Sciences Corporation, which was settled in 2005 for $24 million in overtime payments to technical support workers."

Anonymous said...

Customers Lose Executives Are Rewarded

Commend Lawrie as Employees Axed Repeatedly

Cull Laborers Enrich Awful Ruler

Anonymous said...

IBM Running Out Of Easy Ways To Keep The Shareholders Satisfied

Jul. 2, 2014 11:03 AM ET | About: International Business Machines Corporation (IBM)



Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)


Extract from "Seeking Alpha" article on why IBM is "running out of easy ways to keep shareholders happy:

"Summary
•IBM sales and profits are on a downhill run.
•The company is masking its problems with happy talk and cost cutting.
•This kind of story seldom ends well."

CSC is following the same path

Anonymous said...

Another lawsuit against CSC in US. Details in the National Law Review:

http://www.natlawreview.com/article/court-allows-qui-tam-suit-to-proceed-against-computer-sciences-corporation-and-modis

It is worth reading. CSC's defense is that what they did is legal. Maybe, but was it ethical?

Anonymous said...

I'm sensing class-action opportunity relative to the looting comment which gave me pause. The data must be available, somewhere, as well as beyond the purely anecdotal. With the over-time class-action matter well in-flight, is there an opportunity to see beyond the anecdotal evidence with affirmative data? For if such data, exists, then surely we can expect thousands to enjoin the pursuit.

Anonymous said...

23 July 2014 17:33.

What makes you think a Shareholder Class Action suit would have any chance of success against a CEO who took over a dying company and drove the share price up by over 100% in just over 2 years?