Whole Foods (NASDAQ: WFMI) CEO John Mackey needs to retire to spend more time with his family. In addition to the fact that the share price has lost nearly half its value in less than 2 years, Mr. Mackey has demonstrated appallingly bad judgment, and may even have crossed the line into violations of Regulation FD.
When asked -- Actually, he wasn't asked. just decided to post a rant on his blog -- to explain his emails to board members regarding the proposed acquisition of Wild Oats (NASDAQ: OATS), he chalked it up "macho posturing." Macho posturing? Can you imagine how much fun that guy must be to work with?
Mackey apologized for "errors in judgment", for which he received the "gold medal for understatement" from BloggingStocks writer Jonathan Berr. Berr called it "monumental stupidity" and I would agree with that characterization. Do Whole Food shareholders really want someone who is monumentally stupid running a $5.7 billion company?
Whole Foods' board of director has announced a probe into Mackey's actions, and the SEC is also investigating.
Perhaps Mackey's penchant for "macho posturing" is preventing him from stepping down, but it really would be the best thing for all involved.
Reader Comments (Page 1 of 1)
7-18-2007 @ 8:08PM
Lisa said...
The damage is already done. I won't even consider buying WFMI stock for at least 10 years, and not even then if Mackey is still involved with the company in any way.
7-18-2007 @ 8:24PM
Als Capital said...
Zac, do you wrote:
"Do Whole Food shareholders really want someone who is monumentally stupid running a $5.7 billion company?"
Can it be possible, that John Mackey, who built a 5.7 billion dollar company is actually as smart as his accomplishments indicate, which I am certain is true for you as well.
Disclosure: No WFMI stock or any other connection, except that I shop at Whole Foods when I can.
7-18-2007 @ 8:38PM
Als Capital said...
Zac, you wrote:"Do Whole Food shareholders really want someone who is monumentally stupid running a $5.7 billion company?"
Can it be possible, that John Mackey, who built a 5.7 billion dollar company is actually as smart as his accomplishments indicate, which I am certain is true for you as well. I get the impression that the overwhelming hubris of your BloggingStock post is misplaced, especially in making unsupported suggestions to shareholders of WFMI.
Disclosure: No WFMI stock or any other
connection, except that I shop at Whole Foods for a very select number of items. My blog is purely for education:
http:mnrtrading.blogspot.com
7-19-2007 @ 1:56AM
DayNovo said...
Mr. Mackey’s predilection for anonymous rantings is far from unique in the corridors of power. So much so that at least one startup has stepped into the void to assist acronym-challened CEOs. Check it out at: http://sneakybusiness.typepad.com/sneaky/2007/07/ceos-yearn-for-.html
7-19-2007 @ 4:36PM
Jim Hoppy said...
As A stockholder and a marketing person for more years than most of you are old, I wish to thank everyong for keeping this current. Everytime a person sees the name Whole Foods or any thing pertaining to it, it is free advertising. John either did something illeagle or he didn,t.
Do you really rhink the people that shop there care? I have been in 4 Whole Foods stores in 3 states in the last 5 days, and it is surprising that even the employees could care less. What is cared about is the quality of food and service.
Have a good day and keep giving the WFMI free advertising
7-19-2007 @ 5:19PM
Lisa said...
I haven't shopped at Whole Foods in the past because there hasn't been one in my town. Perhaps there will be (the construction has been on-again-off-again) in the next 6 to 12 months. I have shopped at Whole Foods Market and Trader Joe's. I don't go to Whole Foods Market because they had a long string of bad health inspection ratings and the staff was waaay too birkenstock-granola-dreadlocks-drifty for my liking. I don't care how cashiers look or dress, but I do care that cashiers be able to ring up my purchases accurately and moderately quickly. The Whole Oats crew couldn't accomplish that.
I don't like Trader Joe's because the aisles are too narrow and the people who shop there block the aisles and wander around aimlessly getting in my way when all I want is a bag of dried apricots, a package of tortillas and a couple bottles of juice.
A lot of my ability to forgive Whole Foods and John Mackey will be based on whether the new store doesn't irritate me when shopping there. Give me wide aisles, excellent selection, good quality and competent cashiers. Notice I didn't mention price--I'll pay a little extra and travel a little farther to a grocery store I can tolerate.
7-20-2007 @ 2:34PM
Chilu said...
John Mackey is a very smart gentleman and he runs one of the best companies. The only problem i have working for this comapny is the fact that there is no professionalism and riding up the chain of command depends on who you know. Positions are always posted with a person they will annoint the position in mind - Runs more on the village headman basis.With increasing competition, things are likely to change but its so hard to depend on qualifications to get a well meaning job in this company worse for people of color.
7-22-2007 @ 3:43AM
Jeremiah Cunningham said...
"Monumentally stupid?" Mr. Bissonnett, that statement puts you in your own category, it is called Monumental-Hyperbole, in making stupid characterizations. Mr. Mackey is not stupid, monumentally or otherwise. We would not have anywhere near the amount of organic products in the U.S. if it were not for this visionary entrepreneur that you deign to call "stupid." The $5.7 billion Whole Foods chain will keep John Mackey as CEO because he is highly competent and uniquely qualifed for that position.
7-25-2007 @ 6:58PM
tony said...
Who is going to buy Wild Oats at this price? It's been for sale for quite some time. They ran a good thing with great potential and the opportunity to be #2 into the ground. Bad management,Bad Partnerships and Bad decisions. Is it better if they close all the stores and create more unemployment because John decided to Anonymously tell the truth? Wild Oats should have kept the original owners and got rid of the bean counters and takeover guru's. Whole foods is a breath of fresh air. They forced supermarkets to create some very profitable food sections in conventional Supermarket chains that were boring and not making any $$. All the FTC is doing is wasting our money and your time. Thanks.