Wednesday, August 05, 2009

NetJets New CEO What's It All Mean?

NetJets gets a new leader. Richard Santulli, chairman and chief executive of NetJets Inc is leaving. Many expect Mr. David Sokol, chairman of Berkshire utility MidAmerican Energy Holdings Co., who has long been considered a top candidate to succeed Mr. Buffett at Berkshire to temporarily replace Richard Santulli. Media reports say that this is another sign that David Sokol is to become top dog at Berkshire Hathaway (BRK).

But what about the other signs? Why is Richard Santulli leaving? Is Warren Buffet unhappy with something? Netjets is a private investment so no one has to say anything. Which means the speculation will be delicious. A reverse PR nightmare that communications experts will discuss at length.

In addition to why did he leave here are a few questions. Is NetJets doing well? Was there a disagreement about the future? Warren Buffet is an investor not a hands on operator. Why would David Sokol have to actually take over the job and who is doing his old job which sounds more important? If David Sokol needed a tutorial on the holding why did Richard Santulli have to leave? Why did NetJets not have an obvious successor in waiting?

What will Richard Santulli do next?