Thursday, 31 March 2016

Timing is everything - Jana Partners’ stake in CSC




Everyone has seen examples of the basic truth that in business timing is everything.

Jana Partners gave an illustration of their view that it is time to sell CSC shares.  It has further reduced its stake in the company by 2.5 million shares (almost 35% of its holding) during the quarter to 31 March 2016 . 

Jana Partners now holds almost 4.8 million shares or 2.31% of the equity of Computer Sciences Corporation, a stake is valued at $150 million.

As a point of comparison, in May 2015 Jana Partners held 5.9% of CSC’s shares, and had options to buy a further 2.6%.


Does anybody think Jana Partners would be selling off their stake in CSC if they believed the future was as rosy as Mike Lawrie tries to tell us?  No, we don’t either! Jana reckon they have made their money, now it is time to go.  We agree!

74 comments:

Anonymous said...

This was never about making CSC a great company. It was all about the people in charge extracting as much money out of CSC as they could and leaving just an empty shell to discard.

Anonymous said...

Empty shells... not just the empty shell of a company, but the empty shells of its staff who have been bullied and badgered to the point where they have little left to give!

Anonymous said...

No one seems that interested in this post . . . . wonder why?

Anonymous said...

Jana is an activist investor, they got what they wanted which was the split, made their money and it's now time for another lamb to the slaughter.

With regards to CSC, they won't go bankrupt, they have made some acquisitions over the last 6 months which total over 600m. You can't get approval for those types of acquisitions if your not in a solid footing money wise. The future is still far from certain, but CSC are now settled as middle table and worst case they will stay there and continue to balance the books with annual cut backs every year. They may have a Leicester moment and have an unexpected good year but for now it's mediocrity and hoping for the best.

What is a joke is that Xchanging, their most costly acquisition is actually going through a mini CSC crisis. So CSC will either trim them and move their back office into CSC, or if they are more profitable, then move CSC into Xchanging. Don't forget Xchanging do this for their living. Wouldn't want to be back office in either CSC or Xchanging atm.

Anonymous said...

Because the actions of corporate raiders are open and obvious? As 23:10 below says, they've made their money just as they wanted. They only divest slowly so as to not make too many enemies in the market, but go they will and use their loot to go and pillage another corporation.

Of course, Mikey and friends are happy, they pocketed their piece of the pie just the same as Jana. What's not to like from their point of view?

Anonymous said...

Its not all crash burn... how about this:

http://www.fool.com/investing/general/2016/04/06/why-computer-sciences-corporation-rose-194-in-marc.aspx?source=yahoo-2&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2

19.4% increase in the CSC share price for March but as the article point out, not because Mikey and friends have actually done anything to make it happen though.

However I'm sure come the FY end call he'll be trying to take credit for it.

Anonymous said...

I agree with 23:10 too. Jana got their money and are playing it safe. - If they didn't believe in CSC, they would sell all shares. I guess CSC will carry on and either win some more project, or continue to cut and layoff it order to keep the share price up. - IBM is cutting too. Guess all the big old companies are suffering... Grown too big, fat and slow.

Anonymous said...

Timing is everything ...

Matt Angell (head of Global Sales Ops) replaced on the eve of the global sales shindig in Florida.
Good luck Jeff Snow (ex Teradata), your sandtimer is already running.

Mikeys beleaguered admin seems to be having a hard time keeping up with his revolving door - the announcement was cc'd to Sanjiv Gossain.

Anonymous said...

Classic! What a bunch of numpties. Rich ones at that.

Anonymous said...

at last they fired the right person. When you put a finance guy in charge of sales Ops and Bids you know its all about cuts. He was directly responsible for getting rid of some top people. What goes around comes around. Sadly he will be paid lots to go away unlike the people he got rid off. Justice at last raise a glass or three.

Anonymous said...

agreed - here at Global Sales conference in Orlando playing the who's next game. Trying to spot the reality behind the spin

Anonymous said...

Better you than me - that meeting is one of the things I was most happy to leave behind

Anonymous said...

It seems like everyone in Orlando knows who's the next. "Hey guys, why I'm alone on the stage..."

Anonymous said...

And while you guys play at Orlando, back at the coal face in the UK another round of redundancies looms as a consequence of the Exchanging acquisition. I feel sorry for anybody with duplicate roles.

Anonymous said...

Says it all doesnt it? CSC is a technology company ... who fly people half way around the world to watch a powerpoint presentation.

Anonymous said...

A powerpoint presentation on vapourware again I am sure...

Anonymous said...

What does duplicate roles mean?

Anonymous said...

Normally HR, Finance and Commercial but probably CSC will use it to keep cheaper resources and let "expensive" (for that read "experienced") people "leave", broken company run by comics. Still got Sanjiv listed as head of the UK on their website . . . .

Anonymous said...

I expect work being moved to offshore.. exchanging people may at best have 12 months grace then they will be reviewed, appraised, consulted with and kicked out.

In the meanwhile, current CSC employees with good service will be reviewed, appraised, consulted with and kicked out.

Oh and of course, middle/senior management will be exempt or one or two got rid so can say management reviewed as well.

How the people at CSC UK from HR to the managers can sleep at night, is beyond me. Parasites living off the despair of people they are supposed to be looking after.

Exchanging - your time is up. Do not spend to much at Christmas 2016. Probably need the money in the bank for this time next year... sorry to say...

Anonymous said...

Good for personal airmiles though..... take the mistress away for a long weekend on..

Anonymous said...

Sanjiv officially left CSC last week, that's why they couldn't remove his name from some official comms. He had 3 months notice on top of his gardening leave.

Anonymous said...

Was it his decision to leave ?

Anonymous said...

You must be part of the leadership team with a comment like that

Anonymous said...

Sanjiv (bless him) is still there today, what was once a great place to work is now a laughing stock, thank goodness I left

Anonymous said...

Look at the all the recent UK directors... Andy Williams... rugby yob.. Liz Benison.. hatchett queen... all kicked out of the door.... I have no doubt with a few million in the bank..... golden poisoned chalice.. why not drink from that cup and pocket the cash then leave... laughing all the way to the fat cat bank...

Anonymous said...

U.K. Job isn't poisoned, these folks coming in know it's painful, the pay is huge and the bonus for meeting your target is even bigger. It's like a career break. Come CSC, earn a few million, stress, sack a shed load, then move back to a proper job.

Every person coming in knows that it's about coming to make cuts and getting paid huge amounts for it.

Anonymous said...

CSC end of year Q4 results, Operating Income is RED, Revenue is RED, growth is GREEN.

Write this in stone if you wish, I got told today by someone in the know. The REDs at best case could be disguised as AMBER. Growth was highest in 4 years.

Anonymous said...

Liz picked up Williams' total mismanagement - he nearly bust the company and was totally out of his depth. Liz was dealt a very bad hand by fat Mike

Anonymous said...

Most of the HR dept in the Uk is now sub contractors, the permanent staff got cut too. They are not worried about staff as will move on to pastures new at some point.

Anonymous said...

This blog provided some wonderful insights since the Moneycut and Laughin' (at you) years, but as suggested in a previous post, the worst has happened, and it's time to move on.

For some years since 2012 the blog posts were "this is the kind of aircraft and pilot we need to get us to the promised land" and we employees sat strapped into our economy seats behind the curtain, hoping it would happen. Well, the plane is on auto-pilot, the controls are locked, it's heading for the mountain, and the pilot and all of first class are the door, high-fives all around, ready to jump.

The good news is there's a parachute for everyone. It might not be golden, but that's life. Right now the IT job market (in the U.S. anyway) is strong. The second you tell yourself it isn't, then it isn't. It's time to jump, my friends. Now.

Anonymous said...

More evidence UK admins of little value

CSC Distinguished Engineers are industry-recognized, deep domain experts that are strong technical partners and role models of technical excellence and ethics for professionals across CSC and in broader technology communities. The new Distinguished Engineers are:

Frédéric Auberson (Switzerland)
Martin Bartlett (France)
Pavel Hruby (Denmark)
JP Morgenthal (United States)
Bill Ohnemus (United States)


Read more: http://www.nasdaq.com/press-release/csc-announces-distinguished-architects-and-engineers-20160330-00737#ixzz46MxdxA85

Anonymous said...

Dan Hushon bought the concept of DE's to CSC from his days at Sun - they're meant to be "industry recognised" and "the worlds leading experts in their field". Take a few seconds to look down the list of Sun DE's (Bill Joy, James Gosling, Whit Diffie, Radia Perlman, Jim Waldo, Danny Cohen, Josh Bloch etc etc). Industry wide reputation; world experts. Now look down the CSC DE's and tell me how many of them are "industry recognised" and "world experts" - hell, most of them arent even known within CSC let alone industry wide leaders in their field!

Anonymous said...

Liz wasn't dealt a bad hand, she knew what she was getting herself into. She was hosting parties when the rest of us were facing the chop. She was the one who idiotically said in an all hands that she used the term numbers and was told me her boss John McGuire to say people. She was the one who was given a promotion when we were told we could loose jobs.

Anonymous said...

Have a read of this:

http://www.forbes.com/sites/victorlipman/2013/04/25/the-disturbing-link-between-psychopathy-and-leadership/

Anonymous said...

CSC management no doubt trying to work out how best to ditch staff on BHS account now is going under...

Anonymous said...

To : 25 April 2016 at 12:46, In my humble opinion, that is a bit unkind

Anonymous said...

An email came out from Lawrie n Saleh saying Mark Pickett (stand in GM) is leaving CSC. He was the guy who didn't want the job after Sanjiv Gossain got booted. Apparently he wanted to continue as CFO. Well now it's neither. He is out the door.

It does raise an eye brow or two that he didn't want to be UK GM, job was handed to him on a plate.

Lastly the email states that UK is in get fit? WTF!!!! I thought we were in Yr2 Transformation. The mere fact that get fit and UK is used in one sentence means that more cuts must be round the corner. Pickett probably felt he didn't want to carry the can and got himself another job. Fair play Mr Pickett.

Lawrie n Saleh - hope you choke and leave miserable lives.

Anonymous said...

Ditto.. they are parasites.

I was happy when lawrie joined. My life now destroyed.

Anonymous said...

That more cuts are coming is absolutely in no doubt given how the FY16 figures are going to appear...

Lets face it, who in CSC believes that their job is truly safe?

Anonymous said...

>> Apparently he wanted to continue as CFO.

The email was strangely worded. He didnt want the UK GM job, and *didnt* want to return to UK CFO job. A brief stint working directly for trigger-happy Mikey seems to have put him off the entire company.

Anonymous said...

Pickett was useless anyway, him and Healiss were so dumb

Anonymous said...

+1 to UK HR being dumb. They are so lame it's unreal

Anonymous said...

It's a very poorly worded email... He was acting GM, but didn't want the job and ALSO didn't want his old job?? WTF?

If I was a betting man I'd say more cuts next month. You would only leave if you knew a shit storm is round the corner.

Anonymous said...

Mark Pickett has left for Tribal Group Plc

Anonymous said...

Any views on how the other régions in Europe are doing ?

Anonymous said...

There's a pall that has settled over the CSC/CSRA landscape and I think that this should be viewed disconcertingly by all employees. Clearly the activity on this site has tapered. Are we out of the woods? I think not. Managerial efforts to put forth a countenance of 'things are looking up' should be viewed with a critical eye. Are your existing contracts secure? Mine isn't. And now the company has turned to a bonus scheme to reward employees. It just really comes across as cheap, you know, something that might get cooked up in a fast food setting. Heck, why not just institute a company lottery if you want to go that route.
Curiously, Lawrie resides in the shadows of obscurity accumulating his ever growing wealth.

Anonymous said...

Yeah, and there goes the money for the lottery!

Anonymous said...

Lawrie has 10 months left on his CSC contract. Let's hope he gets the boot by the board, but it looks like he is the most powerful man on the board so I don't think that will happen.

If he has screwed the staff to line his pockets then I hope he pays for the rest of his miserable life. If his decisions were just and warranted then painful as it may be, I'll accept it!

Anonymous said...

Lawrie accumulating wealth? Say it isn't so. He only has $21M in stock from CSC/CSRA in the bank. Of course, that doesn't include any of the 4M to 5M that he's sold over the past few years.

I'm not sure how he can do it, given my HUGE 4.5% raise spread across the past 5 years.

Of course, nothing about increases this year. But seeing our account just got hit with a 50% staffing cut, not expecting any either.

Anonymous said...

Which account is this?

Anonymous said...

Are you certain Lawrie has 10 months left with CSC ? Can anyone else confirm this ?

Anonymous said...

100% he signed in Feb 12, google it. If he had secretly signed an extension the board would have to disclose it to the markets, which CSC have not done. If he has done wrong by the employees I pray to God the SOB is toast!!

Anonymous said...

can't see it on Google, do you have a link ?

Anonymous said...

http://cassandra-guidedinsights.blogspot.co.uk/2012/02/mike-lawries-compensation-package-as.html?m=1

Anonymous said...

Interesting insightful post on Cassandra way back in 2012. Mikey certainly hasn't changed his modus operandi since his days in Misys!
Anonymous29 June 2012 at 22:20
Can't say I'm a big fan of ML. I am one of many (hundreds?) of employees who worked for Misys. For almost two decades I enjoyed a successful career until Lawrie came in and off-shored and laid off countless high-paid dedicated employees like myself. He replaced us with less skilled cheap workers from India, and even though both lower mgt and customers alike complained, the stock price rose and Lawrie managed to fulfill his ridiculously inflated bonus requirements and then jumped ship as soon as he collected. So he makes many millions while hundreds of loyal workers are left unemployed, and Misys is the worse off for it.

So good luck to the employees of CSC. And watch your back - you might want to get those resumes polished.

Reply

Anonymous said...

28 April 2016 at 23:17 - could not agree more.

I expect he will be hanging around filling his snout in the trough of other peoples despair.

http://www.bloomberg.com/research/stocks/people/person.asp?personId=29869411&privcapId=263093

Total Compensation*
Total Annual Cash Compensation $3,576,305
Total Short Term Compensation $1,250,000
Other Long Term Compensation $9,065,901
Total Calculated Compensation $15,453,880



Anonymous said...

248 in the frame for the old heave-ho... the downward cycle continues...

Anonymous said...

which country?

Anonymous said...

The HR team led by Healiss and Transformation team are retarded to say the least. They think its ok to lay off 248 victims and keep 700+ contractors, many of which are on 70k a year, whilst their equivalent are on 30-40k.

I have heard of solution architects on £400 a day. CSC thinks its ok to pay that?

Anonymous said...

UK announced 248 job cuts today

Anonymous said...

500+ GIS RIFs being worked in the USA. Other badness on the way as well. Hold on to your butts.....

Anonymous said...

Lots of it has already happened. I discovered this by trying to get some work done yesterday and person after person I tried to contact around the business was missing from email.

So as well as the headline numbers, they've recently silently stripped out various people already - US and UK.

Oh and PS, welcome to our new former-colleagues from Xchanging. See you at the dole queue.

Anonymous said...

bullet time in the uk again 248 to go makes a change from 700 I suppose

Anonymous said...

yep 6 year of redundancies certainly start to get you down after a while....its part of the yearly cycle now, bit like Xmas but with none of the fun...

Anonymous said...

CSC is the best company in the world! I joined a year ago and have spent 80% of that time sat on the bench. I fill my days watching Netflix, being a house wife and staring out the window. May this job last forever! The management who hired me are clearly in control and very competent people. I have worked with 3 customers so far, all of them hate CSC and think they are shite but Im sure i have just been unlucky...

Anyone else shorting the stock for the results next Tuesday?

Marc

Anonymous said...

CSC have been in a slow decline for some time. The business model is now out of date, too many new staff, not enough experienced staff and a constant churn of senior mgmt has led to a company that has lost control of a demotivated workforce.

Anonymous said...

The retards in HR don't understand Culture vs Strategy, nor does any of the management team.
Their answer to problems is to fire people, hire freshers, do over senior experienced staff, the culture at present is that Managers with hold work and do it themselves in order to keep their own jobs safe. Many of the managers in the organisation just happened to know people high up who gave them jobs.

No good experienced person outside of CSC would want to join here. Its not because CSC is sinking (for the doubters it'll survive 100% on that) but because the company is piss poor who have zero regard for staff morale, the HR guys cannot be trusted to do anything favourably for employees.

The UKEF and Union are equally culpable, when was the last time the union sent any sort of email out? when was the last time the UKEF actually achieved anything?? IC I hope your reading this, why dont you resign in protest mate? turning upto a meeting and bringing some proposals to counter the cuts but NOT A SINGLE ONE IS LISTENED TO doesn't make what your doing worthwhile. Giving people false hope by sending these emails out everytime cuts are announced that we will try this n that. Tell us what you have actually achieved?? Zero, zilch is the answer.

If your working here, do the bare minimum and get by, if your team is good then for their sake do more, but as far as the company goes treat them with contempt, they certainly do the same to you.

Anonymous said...

What none of the UKEF team will tell you

When these cuts are announced, CSC dont give them any notice, infact they get a days notice, none of the proposals on the table as discussed, UKEF turn up, talk about some stuff, CSC says ok we will consider it. They have NEVER managed to reduce the number of staff to be cut, nor have the Unions. Did you know the union wants more people to sign up (in effect us to pay them more) in order to fight cuts? they say in its present state they cant do anything as its not cost viable. Which is exactly the same stance as CSC when they decide to fire staff.

Len McKlusky, thats for getting over 1500 pounds of me so far, i hope your new car arrived okay.

Anonymous said...

COMPUTER SERVICES OUTSOURCING FIRM Computer Sciences Corporation (CSC) is letting 640 staff go in the UK, bringing the total cull so far this year up to 1,100.

The firm said that it was saddened by the losses, but it's not quite as sad perhaps as Unite, the union that has already protested working conditions at the firm.

Unite said that its members are devastated by the news, and adds that the last thing it knew there were discussions taking place about potential job cuts. It said that the news that redundancies will go ahead came out of the blue.

"This announcement of a further 640 job cuts has dealt our members a severe body blow and left them absolutely devastated," said Unite national officer Kevin O'Gallagher.

"We have put forward a detailed plan which will avoid any compulsory redundancies in the company, however these plans have not been taken up and CSC is insistent on issuing compulsory redundancy notices despite receiving sufficient number of volunteer requests to leave the company."

Anonymous said...

'that the last thing it knew there were discussions taking place about potential job cuts. It said that the news that redundancies will go ahead came out of the blue.'

'We have put forward a detailed plan which will avoid any compulsory redundancies in the company, however these plans have not been taken up and CSC is insistent on issuing compulsory redundancy notices despite receiving sufficient number of volunteer requests to leave the company.'

Just proves what i wrote above.

Anonymous said...

CSC now is a really bad company to work for - anybody who has been there for a while and still has a brain should leave - life is so much better outside CSC just imagine wanting to go to work, getting merit rises and not having round after round of redundancies to line shareholders and Mikey and his cronies pockets. Hopefully CSC's customers will soon wake up and leave as well and the company will be bankrupt taking the crap management with them (including HR, UKEF, Mikey and all) good riddance I'd say!!

Anonymous said...

http://www.zacks.com/stock/news/218057/computer-sciences-csc-q4-earnings-will-it-disappoint

will soon find out...

UK has lost a big account I heard through the grapevine....

Anonymous said...

Which account have they lost? None of the big accounts are due for renewal so not sure what your talking about.

Anonymous said...

Can the owner of this blog change the blog title and description ASAP. I have a strong feeling that CSC has hired a team to alter Google search results. Cassandra used to be first hit when searching CSC news. Now it's not on the first page. Keep ahead of the game!!!