Now It's Stock Manipulation-adding woes to King Wiedeking

Isn't it time, King Wiedeking, to give back your severance payment? How long do you want to punish Porsche and their shareholders for your misdeeds. It was enough for you to throw away a perfectly wonderful asset as Porsche Automobil Holding by taking on enough debt in a pure speculative play. But, to add fuel to the fire, stock manipulation? At least, that is the latest allegation. Where there is smoke, there must be fire. Think about it, using derivatives to accumulate sufficient shares to assert control over the Volkswagen company directors. Genius! Except for the leverage taken amidst a credit collapse. Brilliant? Sounds to good to be true, doesn't it?

If you do not get it, maybe the Porsche Automobil Holdings directors can claw-back the severance payment they were so generous in granting. There are other shareholders than company insiders. Perhaps they could execute on there fiduciary duty and push for a claw-back. If not, I say, let the government be the government and take the severence by force! The old fashion way, confiscate it after you have been convicted of a treasonable offense!

Seriously, how many times do we have to allow the government to do the dirty work of elected and appointed directors of Public Corporations. Take the right steps and correct your mistake before we see the government do your job.

What do you think?

Wiedeking Hits the Jackpot after Losing Bet

Holy Mackerel! Talk about "pay-for-performance" executive compensation in Germany.
Wendelin Wiedeking took over a debt-laden luxury car maker and nursed it to a leader in the automotive industry. By that account, he deserves not only plaudits but financial rewards befitting a titan of industry.

Not so fast. Years later, Mr. Wiedking made a poor bet and lost. Wait a minute. it appears he did not lose. Porsche lost.

Earlier, Porsche had acquired some shares of Volkswagen, using an options strategy that included leveraging the power of the shares with debt to purchase options for enough shares to force a merger of Volkswagen and Porsche, with Porsche the surviving entity and Wiedeking on top of the throne. Considering this also involved an inter-family dispute, the majority holders of Porsche and Volkswagen were related. The "kissing-cousins" were jockeying for control of the combined companies.

Enter the financial meltdown, the seizure of credit markets, a ton of debt added to Porsche to execute the strategy, and a free-falling stock market. Boom! The options strategy is blown up and the company was left over-leveraged. Sound familiar, something your next door neighbor with a decent job but greed in his eyes did to trade up in to a more expensive house, refinance a number of times so he could by his boat, Porsche, and the latest LCD flat screen TV, only to wake up after the melt-down with too much debt to cover. Foreclosed!

So, Porsche needed a financial rescue. Enter Volkswagen, the pursued becomes the pursuer. Porsche is forced to merge into Volkswagen. Wideking's strategy blew-up the company. How is he rewarded for such a sterling performance? He gets �50 million. Now, that's pay for performance that should make the Managing Board of Supervisors feel proud!

How tone-deaf could a group of business leaders be to reward catastrophic performance with the riches of a kingdom. And, right under the nose of the EU minders, pushing to put limits on executive compensation to put an end to greed. Where was the Managing Board while Wiedeking was aboard his pony, sabers drawn, in hot pursuit of Volkswagen? Who was looking after the non-family shareholders?

Congratulations, Mr. Wiedeking on a job well done! Let us know in advance where your next job is so we can all short the company.