Business 2004: The winners
Some of the people in business who performed better than expected in 2004:
Larry and Sergey
Just as the letter “o” in Google’s logo multiplies when the search engine returns bountiful results, so have the number of zeros grown next to the dollar sign in the fortunes of the dot-com darling’s founders since they took Google Inc. public in August. Long known as iconoclasts of the Internet, Larry Page and Sergey Brin, both 31 years old, set out to break the mold of the traditional IPO as well, forcing investors everywhere to “Google” the term “Dutch auction” to figure out just what the heck they were up to. When all was said and done, the Google guys were set to ring in the New Year with a paper net worth of about $6.5 billion each. Certainly, these old acquaintances will not be forgotten.
Donald Trump
Only The Donald could make bankruptcy sound like a big win. Trump had to take his casino business on a return trip to Chapter 11 this year to refinance an oppressive $1.8 billion debt. “I don’t think it’s a failure; it’s a success,” Trump said in reference to what he called the “b-word.” It’s hard to argue he’s wrong. Trump will have to ante up $72 million of his own money and his stake in Trump Hotels & Casino Resorts Inc. will be slashed to 27 percent from 47 percent. But the refi will save the company $100 million a year in interest, and Trump will stay on as chairman and CEO. That means he won’t have to hear those dreaded words “You’re fired” from his bondholders, who will control about two-thirds of the company. If all else fails, he can always fall back on his TV career. After all, NBC’s “The Apprentice” did a respectable job of replacing “Friends,” a feat many thought impossible. Trump has even milked the show to get a free wedding ring worth $1.5 million for his wife-to-be in exchange for a plug for its supplier on his show, according to the New York Post. Now that’s class.
Steve Jobs
His companies are responsible for one of the hottest gifts of the holiday season, some of the best animated movies in recent years, and computers that are free of viruses. If that doesn’t make the CEO of Apple Computer Inc. and Pixar Animation Studios one of the hippest executives around, consider this: His iPod pitchmen include U2’s Bono and The Edge, two of the most corporate-shy rock stars alive. Jobs might not be able to beat rivals Bill Gates and Michael Dell for control of the world’s personal computer market, but he was able to beat back pancreatic cancer this year. He even got in a post-op plug for Apple products in an e-mail to employees from his sickbed: “PS: I’m sending this from my hospital bed using my 17-inch PowerBook and an Airport Express.” Rock on.
Alan Lacy
Though his company is merging with the home of the “Blue Light Special,” don’t expect the chairman and CEO of Sears, Roebuck & Co. to see a markdown in his salary. In fact, he’ll get a 50 percent raise once Edward Lampert’s Kmart Holding Corp. takes control of Sears. Lacy’s new deal calls for a salary of $1.5 million and a bonus of up to $2.25 million, not to mention 75,000 shares of restricted stock and 200,000 options. That’s some serious roebucks.
The Whitehouse Station Parachute Club
Investors holding Merck & Co. shares could have used a good painkiller after the pharmaceutical giant pulled its blockbuster drug Vioxx from the market due to heightened risks of heart attacks and strokes. Though the company’s stock price has lost more than a third of its value, and there is much speculation over what will be left of Merck once plaintiffs’ lawyers are through with it, fear not for the Whitehouse, N.J., company’s top managers. Not long after the Vioxx withdrawal, the company got busy weaving 230 “golden parachute” severance packages that will pay them up to three times their base salaries and bonuses should they face the ax if Merck is bought or merged with another pill pusher. Geronimoooooo!