Kaiba Corporation Case Study
As part of your financial investments portfolio, you own stock in Kaiba Corporation (NYSE: KCRP). Following the announcement of the new Duel Disk, shares are trading at an all-time high of $413.98. However, its charismatic CEO, Kaiba Seto, is once again on a “leave of absence” for unknown medical reasons and for an indeterminate length of time, and Wall Street analysts generally agree that Kaiba Corporation’s recent investments in space infrastructure were a bad move on his part. The question remains as to whether the Duel Disk and other Kaiba Corporation verticals (e.g., the amusement parks) will be able to sustain Kaiba Corporation despite the undeniable money sink that is the KC-1 Space Station. Kaiba Corporation’s cash position is best described as “unstable” and leverage is higher than average compared to its competitors.
Since its inception, Kaiba Corporation has not been managed so much as it has been ruled by its dynastic chief executives — if they had a family motto, “my way or the highway” would be an apt choice. Their results have been undeniable, although their methods are, delicately speaking, suspect. Analysts note that Kaiba's younger brother, Kaiba Mokuba, filling in as interim CEO, will almost certainly act in lock-step with both his brother’s strategic objectives and the “family legacy” vis-à-vis management style. Given Kaiba’s absence, the company may double down on strategy that favors the status quo: in essence, making sure that when he returns, he will find it just as he left it. If righting the ship now means displeasing the Kaiba family in the future, clear-cut (dare I say “common sense”) solutions will not necessarily be available to decision-makers.
You will have the opportunity to vote on a new board of directors at the next annual shareholders’ meeting. You may choose to retain the current board — essentially a vote for Kaiba’s continued leadership — or vote to remove the current board and replace them with directors who are unlikely to allow Kaiba to continue his reign over Kaiba Corporation. As noted, share price is strong, but the future holds only uncertainty.
How do you vote?
i'm tired of his bullshit VOTE THIS BITCH OUT!!!!
he's done it once he'll do it again. LET HIM COOK!!!!
