Nasdaq's CEO 'does not know how to calculate gross profit margin'
Chief of US stock exchange admits in court that he lacks basic accounting skills
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]
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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
