The Housing Crisis : Hollate Manufacturing Undergone A Series Of Major Changes At Key Managerial Positions Essay

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Around the time of the housing crisis in the US, Hollate Manufacturing underwent a series of major changes at key managerial positions. The former CFO, Jack Brennahan, became the new CEO. Brennahan helped conduct the search for a new CFO to fill his spot, and they eventually decided on William Blackburt. Blackburt was hired mostly due to his prior success at growing a manufacturer through acquisitions. Despite the recent economic downturn, Hollate had success with their first acquisition and IPO and were looking to continue to grow the company through further acquisitions. When Blackburt was hired, he negotiated aggressively for his compensation package to include significant bonus opportunities based on higher revenue growth. Shortly prior to Blackburt being hired, Hollate’s board also underwent some changes. Mike Soltany was the Audit Committee Chair. The two other members of the board were recruited by and were acquaintances of Brennahan’s. Eventually this board would become even closer with one another and with other members of management at the firm. Once operations got underway with Blackburt as the new CFO, he was an aggressive supporter of Hollate making further acquisitions. This strategy seemed to work for the company and things seemed to be looking up. The positive environment at Hollate and the personal relationships that formed among top managers led to a strong sense of trust among top management. Eventually, this sense of trust paired with the focus on meeting
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