Symantec’s John Thompson Drives Company Into Ditch; Flees on Foot

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John Thompson spent the past five years heading Symantec Corporation, and the stock has not moved one dime. His strategy has been to gobble up companies through a series of Mergers and Acquisitions, and one company, in particular- Veritas- cost the company so much money in lost stocks and confidence, it never recovered.

Now after five years of floundering leadership, more worthless acquisitions, and massive layoffs, John Thompson is finally calling it quits, or at least that is what the press reported. There is a high likelihood that the board of directors finally pushed him out. Other rumors say he has to divest his interests now in order to be considered for a cabinet position with the Obama administration.

In Nov 2003, the stock price was 13 bucks per share.  Today, five years later, the stock closed at 12 bucks per share.  As a comparison, over the same period of time, McAffee went from 13 bucks per share to 32 bucks per share.  If that doesn’t prove that John Thompson drove his Big Yellow company into a ditch, nothing does.

Thompson hand-picked his successor, Enrique Salem, who, on a recent all hands call, said that the recent downturn in the economy was good, because the new Obama administration would likely bring “new roads projects.”  And guys who use jackhammers to build roads were Symantec’s target customers.

I just hope “Joe the Jackhammer” puts his investment money into a company with a proven record of growth.