The Simpletel Dilemma

S. Venkataraman, P. Nair, Rajesh P. Narayanan
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Abstract

Until recently, SimpleTel had been a star performer in the telecom industry, and the CEO had been a darling of the analyst community. Several years back, SimpleTel’s found itself in a situation where customers were migrating to smaller, local telecom providers to avoid the congestion on SimpleTel’s network. At that point, SimpleTel’s leadership had decided to invest heavily in expanding network capacity. But now the company was left with a huge amount of unutilized capacity. That, along with debt obligations related to the massive investments in capacity, and lack of demand was threatening to push SimpleTel to the verge of bankruptcy. The previously celebrated CEO had fallen out of favor and shareholders were baying for his blood. He was forced to make an unceremonious departure, and the search for a savior had begun. Today, the compensation committee was due to deliberate on the compensation package for SimpleTel’s new chief executive.
Simpletel困境
直到最近,SimpleTel一直是电信行业的明星,其首席执行官一直是分析师社区的宠儿。几年前,SimpleTel发现自己处于一种情况,即客户迁移到较小的本地电信提供商,以避免SimpleTel网络的拥塞。当时,SimpleTel的领导层决定大力投资扩大网络容量。但现在,该公司留下了大量未利用的产能。这一点,再加上与产能大规模投资相关的债务,以及需求不足,可能会将SimpleTel推向破产边缘。这位曾经声名显赫的首席执行官已经失宠,股东们纷纷要求他下台。他被迫不辞而别,开始寻找救世主。今天,薪酬委员会将审议SimpleTel新任首席执行官的薪酬方案。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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