Nasdaq’s
chief executive cannot calculate gross profit margin.
The humiliating admission, from
Bob
Greifeld, came under oath during a case in the New Jersey Superior Court
where he filed a lawsuit against a company that organised a reunion for his
family in a castle in Ireland, The Times reported.
The MBA graduate claimed he was overcharged and refused to pay the final
installment.
The organising company, Tours of Enchantment, claimed it charged a fee that
was based on a gross profit margin of 38%. Greifeld said he understood the
contract to be based on cost plus a mark-up of 38%.
When asked whether he understood the difference between a 38% mark-up and a
38% gross profit margin, Greifeld said ‘No’.
Greifeld is involved in a hostile bid to takeover the
London Stock
Exchange.
EDITED TRANSCRIPT
Richard Mackiewicz, lawyer to the defendant: ‘Mr Greifeld,
do you understand the difference between a 38% mark-up and a 38% gross profit
margin?’
Bob Greifeld, Nasdaq CEO: ‘No.’
RM: ‘You do not?’
BG: [shakes head]
RM: ‘Would I be correct that you do not know how to compute
gross profit margin?’
BG: ‘How to compute gross profit margin?’
RM: ‘Yes.’
BG: ‘Under US GAAP?’
RM: ‘Just do you know how to compute…’
BG: ‘No. [long pause] I have accountants who do that for
me.’
Further reading:
Aiming
to be Irish left Nasdaq chief quibbling over his $611,000 party bill
Profit
and loss: Nasdaq chief lacks skills in economics
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