Genworth zombie McInerney
Haute Living: “7 Tips on How to be Successful from Genworth CEO Tom McInerney” by Laura Schreffler:
7) Let them make zombie movies. A while ago, an employee came to me with an idea. He wanted to make a zombie movie, because if zombies “live forever” (permanently undead but pretty beat up looking), they really need long term care insurance. So I helped him find a film crew to make his movie. Many jobs stifle creativity, but I wanted to encourage him to continue to bring his passion and creativity to his job. I’m looking forward to seeing the final product.
Some context on Mr. McInerney of Genworth:
Last April, in Bloomberg: “Genworth CEO Gets $12 Million After Stock Doubles” by Zachary Tracer:
The package included a $3 million bonus, $7.06 million of stock options and a salary of almost $1 million, the insurer said today in a regulatory filing. Profit has been recovering at Genworth as the insurer raises prices for long-term care policies and a recovery in home values bolsters the mortgage-insurance unit. McInerney, 57, started on Jan. 1, 2013 and announced 400 job cuts in June that the company said will save it as much as $90 million annually.
So it’s long-term care and home mortgage insurance, and he got a big executive compensation while cutting jobs — wow such zombie themes!
Then less than three month later, “Genworth Falls as Claims Costs Prompt Review of Reserves” by Zachary Tracer and Kelly Gilblom:
The insurer dropped 8 percent … the biggest slump in the Standard & Poor’s 500 Index … Chief Executive Officer Tom McInerney is taking over supervision of the U.S life business, including long-term care … Profit from long-term care fell to $6 million in the second quarter from $26 million in last year’s second quarter … burned by low interest rates and larger-than-planned expenses for home health aides or nursing home stays.
Since then it’s had a mild climb, but this week another sell-off, see Markets Emerging: “3 Big Selloffs” by Matthew Wagers:
Genworth Financial Inc (NYSE:GNW) fell 4.04% yesterday after its presentation at the Keefe Bruyette & Woods 2014 Insurance Conference in New York City.
And a double-whammy with an “Investor Alert: Lawsuit against Genworth Financial Inc (NYSE:GNW) alleges Misleading Statements” at Ground Report:
The Shareholders Foundation announces that an investor, who purchased shares of Genworth Financial Inc (NYSE:GNW), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Genworth Financial Inc in connection with certain allegedly false and misleading statements made between December 4, 2013 and July 29, 2014.
Investors who purchased shares of Genworth Financial Inc (NYSE:GNW) have certain options and for certain investors are short and strict deadlines running. Deadline: October 20, 2014. NYSE:GNW investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
So possible misleading statements too, this guy was definitely worth 12 million! Well only almost, Salary.com says it was only $11,986,064.
Still in Forbes Dividend Channel today: “Genworth Financial Becomes Oversold (GNW)“, citing the Oracle:
Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful.
Here’s the 1 year chart at Yahoo, so you decide if McInerney was worth his April bonus, the year’s gains have mostly washed away.