Delta, what Happened

[Steven Seligman]

I must have been asleep at the wheel, I went to the delta site looking for a 31-269 pneumatic sanding drum for my 6x48-12dia sander and it looks like they are on life support. No, machines, no accessories nothing nada zip zero caput

[Kent A Bathurst]

You sure about that?

http://www.deltamachinery.com/

[Grant Wilkinson]

What site are you on? This one seems to be full of stuff

http://www.deltamachinery.com/

[glenn bradley]

You sure about that?

http://www.deltamachinery.com/

Yep. The Delta we all knew and loved is no more. Parts for almost any legacy machine you have are scarce if not just plain unavailable:

311344

Parts for my Delta machines are in the "just plain unavailable" category but, I was able to make some and fake others. One painful aspect of the current point in this sad history is that many sellers websites still show parts as available. Several times I was given hope only to have it dashed a couple weeks later when the order hit the warehouse and the cupboard was found to be bare.

The new Delta offers a few machines and is trying to carry the badge forward.

[Steven Seligman]

If you dig thru the site it is just really cheap big box store table top stuff for the most part. Only thing left is the unisaw.

[Joe Jensen]

Delta fell to the disease of the cheap consumer. Most people stopped being willing to pay ANYTHING more for quality and Delta had to choose to either compete with the Taiwanese and later Chinese tools or to go up after the more commercial market. They choose the worst possible plan, build the same Chinese tools, put their valuable brand name on them and then sell at a premium. That worked for a few years but eventually customers figure out that Delta is the same as Griz and they stop paying anything for the Delta name. The valuable Delta brand loses it's value and here we are. Powermatic and Jet have survived IMHO because they have innovated a lot and they have a ton of new machines. A lot of Powermatic and Jet machines are the same as the Griz but there are others that are better.

[Greg Woloshyn]

Delta fell to the disease of the cheap consumer. Most people stopped being willing to pay ANYTHING more for quality and Delta had to choose to either compete with the Taiwanese and later Chinese tools or to go up after the more commercial market. They choose the worst possible plan, build the same crap Chinese tools, put their valuable brand name on them and then sell at a premium. That worked for a few years but eventually customers figure out that Delta is the same as Griz and they stop paying anything for the Delta name. The valuable Delta brand loses it's value and here we are. Powermatic and Jet have survived IMHO because they have innovated a lot and they have a ton of new machines. A lot of Powermatic and Jet machines are the same as the Griz but there are others that are better.

I agree with this 100%.

[Mike Hollingsworth]

American Motors of WoodWorking

[Peter Kelly]

Delta fell to the disease of the cheap consumer.I'd say corporate greed and mismanagement probably had more to do with it.

[Mel Miller]

Delta fell to the disease of the cheap consumer.

I agree. Too many consumers make their buying decisions based on the cheapest price rather than high quality. Places like HF and the box stores are selling crappy tools, etc. for less, and cheap consumers are stepping up and buying them.
How many threads have we seen where someone has bought a cheap imported tool only to discover it's basically junk? Then, they make excuses for their cheapness by saying the tool is "good enough for what I need it for" or something along that line.

[Rick Potter]

I didn't know they dropped the 14" band saw for one that looks like a Grizzly. The spindle sander looks like the Griz/Jet, but the surprise to me is that they still sell an edge sander that looks like my 10 or so year old one.

They are obviously sourcing most of their stuff from the usual Chaiwan sources.

[Phil Thien]

I'd say corporate greed and mismanagement probably had more to do with it.

I agree. There are plenty of purveyors of high-end woodworking tools. Management rode the Delta name all the way to the bottom.

[Steven Seligman]

Delta fell to the disease of the cheap consumer. Most people stopped being willing to pay ANYTHING more for quality and Delta had to choose to either compete with the Taiwanese and later Chinese tools or to go up after the more commercial market. They choose the worst possible plan, build the same Chinese tools, put their valuable brand name on them and then sell at a premium. That worked for a few years but eventually customers figure out that Delta is the same as Griz and they stop paying anything for the Delta name. The valuable Delta brand loses it's value and here we are. Powermatic and Jet have survived IMHO because they have innovated a lot and they have a ton of new machines. A lot of Powermatic and Jet machines are the same as the Griz but there are others that are better.

This is a major pain, if something breaks looks like we are totally screwed. it doesn't look like there is any path to parts for legacy equipment to speak of. ugh.


I have 1982 pm90 lathe and 1976 PM95 scroll saw that I can still order parts from Jet. I guess this debacle is in part the result of the DE Walt - PC deal (another crime). looks like the company is being "run" by bean counters now. It take true talent to screw up a company this bad, what a shame, absolutely blows my mind.

RIP

[Keith Pleas]

I bought a Delta scroll saw recently - works perfectly and has several design improvements over the "old" version which was a rebadge of the Dewalt. Hey, it's not earth shaking but went in knowing that they weren't the company they were 30 years ago. Then again, I'm not really as fit as I was 30 years ago either. :)

[John Sincerbeaux]

Just another company that fell to the "Walmartization" of America.

[Larry Menzel]

Used to love 'em, dumped everything I had except my little vs shop grinder. Saw, bandsaws...even their mini lathe, not worth the bother for parts and/or service. No more Delta pour moi.

Larry

[Bill White]

And the monster Delta plant here in Tupelo, MS is STILL vacant..........
They sure turned out some great stuff for many years. Oh well........
Bill

[roger wiegand]

You just need to look to Festool to see that lots of folks are still willing to pay big bucks for even moderately improved quality. Sure there are folks who want the cheapest possible product, but there are also a significant number willing to pay more to get more. I'm encouraged to see that even in the big box stores better quality stuff seems to be gaining shelf space, and the throwaway stuff is declining.

Delta management chose a short term opportunity to sell inexpensively made tools at premium prices, eliminate costly support and parts inventories, pump up profits for a few quarters, and, as a result squander the longer term value of the company and brand name. I don't know the story, but it's exactly what any self-respecting corporate raider would do-- wring as much profit as possible out as fast as possible then abandon the withered husk of the company.

[Phil Thien]

You just need to look to Festool to see that lots of folks are still willing to pay big bucks for even moderately improved quality. Sure there are folks who want the cheapest possible product, but there are also a significant number willing to pay more to get more. I'm encouraged to see that even in the big box stores better quality stuff seems to be gaining shelf space, and the throwaway stuff is declining.

Delta management chose a short term opportunity to sell inexpensively made tools at premium prices, eliminate costly support and parts inventories, pump up profits for a few quarters, and, as a result squander the longer term value of the company and brand name. I don't know the story, but it's exactly what any self-respecting corporate raider would do-- wring as much profit as possible out as fast as possible then abandon the withered husk of the company.

Yep, it is the norm these days, not the exception.

[Pat Barry]

I don't look lovingly back at Delta, thats for sure. The single new item that I purchased from them back in the day was a 10" compound miter saw. It was never a thing of beauty but it did work. It had its quirks, like they couldn't apparently fabricate a straight fence for it. The dust collection was a joke. Trying to tilt it left and or right and even step it around left to right to the different detents was a pain. Because of these quirks I chose to never buy another Delta tool. Later I have purchased a Rigid tablesaw and lunchbox planer and have been totally happy with them both. The moral to me is - sell bad products and you don't get repeat business and don't get tears shed for you when you go out of business.

[Peter Aeschliman]

You just need to look to Festool to see that lots of folks are still willing to pay big bucks for even moderately improved quality. Sure there are folks who want the cheapest possible product, but there are also a significant number willing to pay more to get more. I'm encouraged to see that even in the big box stores better quality stuff seems to be gaining shelf space, and the throwaway stuff is declining.

Delta management chose a short term opportunity to sell inexpensively made tools at premium prices, eliminate costly support and parts inventories, pump up profits for a few quarters, and, as a result squander the longer term value of the company and brand name. I don't know the story, but it's exactly what any self-respecting corporate raider would do-- wring as much profit as possible out as fast as possible then abandon the withered husk of the company.

Couldn't have said it better myself.

...makes me wonder why we don't have any popular made-in-America woodworking machinery. Festool, Felder, MiniMax, etc- People are spending big bucks to buy these machines, and I would guess that labor in Europe isn't more expensive than labor in the US (I haven't done any research though)...

At this point, maybe the high end market is just too crowded for any US companies to risk entering such a capital-intensive business these days. It sure would be cool if we could get Euro quality machines made in the US though.

[Paul McGaha]

It is very disappointing to see they've chosen to not continue to make quality tools and not provide parts and service for the quality tools they've sold over the years. I feel let down by them.

I own a Unisaw, Shaper, Drill Press and Drum Sander from them. Hope the tools hang in there. It would be expensive to replace them. But I know that's a possibility.

I was walking thru my local Lowe's the other day and noticed a Delta table saw for sale. Really cheap looking saw. I guess that's what they're doing these days.

I guess they took Biesemeyer with them too. Really is a shame.

PHM

[Rod Sheridan]

It is very disappointing to see they've chosen to not continue to make quality tools and not provide parts and service for the quality tools they've sold over the years. I feel let down by them.

I own a Unisaw, Shaper, Drill Press and Drum Sander from them. Hope the tools hang in there. It would be expensive to replace them. But I know that's a possibility.

I was walking thru my local Lowe's the other day and noticed a Delta table saw for sale. Really cheap looking saw. I guess that's what they're doing these days.

I guess they took Biesemeyer with them too. Really is a shame.

PHM

Hi Paul, I agree it is a shame.

I believe you can still purchase a Biesemeyer fence from General International............Regards, Rod.

[Steven Seligman]

It is very disappointing to see they've chosen to not continue to make quality tools and not provide parts and service for the quality tools they've sold over the years. I feel let down by them.

I own a Unisaw, Shaper, Drill Press and Drum Sander from them. Hope the tools hang in there. It would be expensive to replace them. But I know that's a possibility.

I was walking thru my local Lowe's the other day and noticed a Delta table saw for sale. Really cheap looking saw. I guess that's what they're doing these days.

I guess they took Biesemeyer with them too. Really is a shame.

PHM


I hear you I have several pieces of "Old" Delta equipment. Feel like I am outstanding in my field if you know what I mean. Searching for old American iron to replace it all. So far got a PM90 and PM95 off of Craigslist for what I feel is a steal. Now looking for a new belt disc sander to replace my delta and drill press again to replace my delta. Makes me sick .

[Myk Rian]

Delta fell to the disease of the cheap consumer.
May I say no?

I'd say corporate greed and mismanagement probably had more to do with it.
This is more like it.
Add some Wall Street into the mix and you have companies being parted out.

[Simon Dupay]

Is the unisaw still made in the US? they made a big deal about it when it first came out and now it just says since 1937- one good thing about Chinese tools everone sells the same tool so you can get replacement parts form elsewere

[Michael Moscicki]

Is the unisaw still made in the US? they made a big deal about it when it first came out and now it just says since 1937- one good thing about Chinese tools everone sells the same tool so you can get replacement parts form elsewere

It is made in Taiwan along with the Biesemeyer fence.

From the FAQ on the Delta website:

Which if any of your table saws are made in the United States? Are they merely assembled in the United States with foreign made parts?

The Unisaw is now manufactured in Taiwan. The new Unisaw will meet or exceed all quality standards of it's domestic predecessor.

[whit richardson]

I'd add to this that the Delta management swings also coincided or partly with the Recession/Depression of '08 to when did it end? During that time all the expensive hobby markets (okay guys let's admit there are a lot more tools sold than get used) went to the basement. I remember you could by almost new bandsaws, drill presses, TS, etc for pennies on the dollar from over extended folks. Cheap RV's, foor wheeels with trailer and boats, boats, boats too. Delta compounded their bad management then had their hobby buyers disappear for years too. Just sayin'

[Peter Aeschliman]

May I say no?

This is more like it.
Add some Wall Street into the mix and you have companies being parted out.

False dichotomy, Myk. It can be (and probably was) a combination of both.

To me, it reveals a potential internal conflict at Delta. I imagine they had some execs who believed that the market was headed in the direction of low cost, Asian-made machinery (this is mostly a consumer-driven phenomenon- if it wasn't, how do you explain grizzly's success?), and others who wanted to maintain the high quality brand. Perhaps their compromise was to attempt both... Keep prices high and start manufacturing in China...

The market has spoken. Consumers aren't stupid (well, some are of course). You can't have your cake and eat it to.

I think it was both. Corporate greed, and consumer demand for lower quality, lower priced machinery.

[Erik Loza]

...consumer demand for lower quality, lower priced machinery.

This ^^^^

Cannot tell you how many guys I talk to who say, "I'd love to have your such-and-such machine but just need something to get me by...", and buy Asian or used.

I never understood pointing the finger at the manufacturers. They build what folks ask for. Back in the early 2000's, when I worked for one of Minimax's competitors in the Sacramento area, nobody wanted to buy that company's "budget" line of blue and purple machines, only their "premier" line of green machines. In fact, we joked about the rep who got saddled with trying to sell that line because we viewed ourselves as selling BMW's while that guys was stuck trying to sell mopeds. Well guess what? The recession hit, shook everything up, and I would be willing to bit that since then, the moped sales guy out-sells the BMW sales guy. Regardless of the recession, quality machinery has always been out there and available. Whether or not folks are willing to pay for it is a different story. It's not like the supply ever dried up, only the demand.

Erik

[Peter Kelly]

I sincerely doubt that consumers have ever demanded lower quality tools or machinery. Blaming the consumer and labor unions while gutting a company is a classic Wall Street / PE strategy.

[Peter Aeschliman]

I sincerely doubt that consumers have ever demanded lower quality tools or machinery. Blaming the consumer and labor unions while gutting a company is a classic Wall Street / PE strategy.

Peter (great taste in names btw),

If consumers were not willing to make the trade off of price and quality, they would not buy the lower quality, lower priced machines. Grizzly would cease to exist, and never would have taken enough of Delta's market share to cause their I'll-fated change in strategy.

"demanded" is more an economic term for purchasing behavior, than it is a mob of consumers with pitchforks and megaphones.

The economic meltdown would not have happened if people hadn't taken out mortgages they couldn't afford. This was, in part, an issue of consumer financial illiteracy. Of course, the other part was corporate greed. Both wall street AND consumers caused the meltdown. It also wouldn't have happened if wall street hadn't fanned the flame of this irrational behavior by buying mortgages lent by mortgage brokerages that should've rejected applications from uncreditworthy consumers.

Both conditions caused the problem.

It is an excellent corollary for you to draw because both the meltdown and the Delta failure were caused by multiple conditions at once.

In hindsight, Delta probably would have been able to compete if they handnt tried manufacture offshore AND keep prices on the higher end. But if consumers didn't want low priced machines, this never would have been an issue and Delta would continue on.

These are complex issues and it's overly simplistic to blame only one of the contributing factors.

[Paul McGaha]

Well, I for one will pass on taking any responsibility for what happened to Delta. I supported them. I bought 4 tools from them (3 of them were US made).

Powermatic found a way to survive. General did too.

PHM

[Peter Kelly]

I'm sure former B+D CEO Nolan D Archibold would certainly agree with your points regarding the economy and consumer attitudes. He was certainly worth the $123m he took home in 2014 (http://articles.courant.com/2014-03-11/business/hc-stanley-black-decker-proxy-2014-20140311_1_stock-options-donald-allan-jr-stanley-black-decker).

His team really did some great work with Delta.

[Rick Potter]

Idea: Grizzly can buy out Delta and reintroduce it as their 'premier' brand. At least the company would be well run.

PS: If anyone thinks that controversy is new with the Delta/Rockwell name, see the recent post about the Iturra catalog. There is a great story at the end of the catalog about how Rockwell (Delta) evolved. You could make a movie about it. Small company takeovers, labor strikes, union busting, mergers, new factories, selling off assets, moving overseas, total divestment.

Story of Jet there also.

[Peter Aeschliman]

I'm sure former B+D CEO Nolan D Archibold would certainly agree with your points regarding the economy and consumer attitudes. He was certainly worth the $123m he took home in 2014 (http://articles.courant.com/2014-03-11/business/hc-stanley-black-decker-proxy-2014-20140311_1_stock-options-donald-allan-jr-stanley-black-decker).

His team really did some great work with Delta.

You don't seem to be interested in engaging in an intelligent discussion, so that's it for me in this thread...

[Myk Rian]

I thought it was intelligent.

[Joe Jensen]

Companies exist to drive benefits for their shareholders (individuals, mutual funds, pension funds, etc). They do not exist for the benefit of consumers or workers. In this country we probably have hundreds of thousands of pages of laws and regulations around what you can and cannot do when running a company. Things like how much you have to have in the pension fund, etc. It's the duty of the CEO and the board of directors to maximize the profits of the company for the shareholders and that usually puts them at odds with the workers. In Arizona, all realtors have a legal obligation to maximize the seller's position. That's important because even if you have been working with a realtor who has shown you dozens of homes, their legal obligation is to the seller and not you their buyer. They never tell you that, but at least in AZ that's the law. The CEO is obligated to the shareholders and the board of directors (voted in by the shareholders) decide how the CEO is incentivized and paid. The board created a set of goals and rewards for the CEO to drive a set of goals. Sounds like the CEO met or exceeded the goals meaning he did exactly what the board wanted. The CEO above likely followed all the laws and worked to maximize what his personal pay package but that's what he was asked to do. When the public get all upset about CEO pay packages they are misdirecting their anger. The Board of Directors who are voted in by the shareholders of the company are responsible for setting goals and rewards. If the CEO drives to the goals and the results are bad then shame on the board.

[Myk Rian]

Jack Nasser showed the exact opposite of what you say.
From the day "Jacques the Knife" became CEO at Ford Motor he proceeded to tear the company apart. It's a good thing Bill Jr. stepped in and fired him.

How much have Delta, (or whatever company owns it) stocks increased in value? The company/name has been torn apart, and put in the nearest dumpster.
Financial laws allow an individual/group to buy a company, take it apart, and let it fold. All the while writing off the losses and bringing home a profit. Unbelievable.

[Brian Henderson]

False dichotomy, Myk. It can be (and probably was) a combination of both.

To me, it reveals a potential internal conflict at Delta. I imagine they had some execs who believed that the market was headed in the direction of low cost, Asian-made machinery (this is mostly a consumer-driven phenomenon- if it wasn't, how do you explain grizzly's success?), and others who wanted to maintain the high quality brand. Perhaps their compromise was to attempt both... Keep prices high and start manufacturing in China...

The market has spoken. Consumers aren't stupid (well, some are of course). You can't have your cake and eat it to.

I think it was both. Corporate greed, and consumer demand for lower quality, lower priced machinery.

It's not a demand for lower quality machinery, it's a recognition that most people don't need high-end, high-priced machines to do what they want to do. Most people don't care about accuracy to a thousandth of an inch. They want to get close enough and if a $300 Taiwanese machine can do it, why buy a $3000 high-end machine? Delta was a big company. They can't rely on a small handful of people who are going to seek out a high-end, high-cost machine. It isn't greed to recognize that they need a bigger chunk of the market. That's not greed, that's business reality. Neither is it a failure of consumers if they realize they have no need for something that they will never use, at a much higher cost. That's why cheap Harbor Freight circular saws outsell Festool track saws by a huge margin. Most people have no need for Festool.

[Jon Grider]

Companies exist to drive benefits for their shareholders (individuals, mutual funds, pension funds, etc). They do not exist for the benefit of consumers or workers. In this country we probably have hundreds of thousands of pages of laws and regulations around what you can and cannot do when running a company. Things like how much you have to have in the pension fund, etc. It's the duty of the CEO and the board of directors to maximize the profits of the company for the shareholders and that usually puts them at odds with the workers. In Arizona, all realtors have a legal obligation to maximize the seller's position. That's important because even if you have been working with a realtor who has shown you dozens of homes, their legal obligation is to the seller and not you their buyer. They never tell you that, but at least in AZ that's the law. The CEO is obligated to the shareholders and the board of directors (voted in by the shareholders) decide how the CEO is incentivized and paid. The board created a set of goals and rewards for the CEO to drive a set of goals. Sounds like the CEO met or exceeded the goals meaning he did exactly what the board wanted. The CEO above likely followed all the laws and worked to maximize what his personal pay package but that's what he was asked to do. When the public get all upset about CEO pay packages they are misdirecting their anger. The Board of Directors who are voted in by the shareholders of the company are responsible for setting goals and rewards. If the CEO drives to the goals and the results are bad then shame on the board.

Interesting internet search:"people who serve on a board of directors for several companies." Correct me if I'm wrong , but the more shares one has, the more votes or clout his vote has in deciding the BOD. Kind of a good old boy thing going on here, you be on my board, I'll be on yours. But, of course, there are very few people capable and qualified to be on a BOD or CEO, right[tongue in cheek]? So to state the obvious, execs typically own high portions of shares in their own and their buddies companies. They and not the guy who owns a few shares in a 401K mutual fund are the real drivers of who gets what as far as compensation. Again the good old boy thing, we'll give you xmillion for being CEO of company A if you give me xmillion for being CEO of company B.

[Joe Jensen]

Interesting internet search:"people who serve on a board of directors for several companies." Correct me if I'm wrong , but the more shares one has, the more votes or clout his vote has in deciding the BOD. Kind of a good old boy thing going on here, you be on my board, I'll be on yours. But, of course, there are very few people capable and qualified to be on a BOD or CEO, right?

Most directors own very little of the companies stock, too little actually. A few very wealthy activist investors like Carl Ican are the exception. The good old boy element emerges when the board nominates directors and the shareholders are apathetic. I don't recall the statistic, but getting voted off a board is about as likely as a judge being voted off the bench. Lots of bad directors and lots of bad judges but neither get voted out much.

I'd also add the even though what these corporate raiders and CEOs do is usually completely legal, it's not something I'd be able to do and still look at myself in the mirror.

One last thought. I have a friend who has a small company where most employees are 20-30 and most customers are under 35. He is about 50. His observation is that 20 years ago most people 20-30 had a moral compass rooted in religion, knowing right from wrong, and feeling guilty when you did wrong even if you weren't caught. He says that the new moral code is "it's ok if you get away with it".

[Jon Grider]

"Options are a compensation tool designed to retain executives and reward performance. And while they are increasingly being replaced by shares of restricted stock (http://www.investopedia.com/terms/r/restrictedstock.asp) in executive pay, they still made up 31 percent of the average long-term incentive package in 2012, according to a 2013 analysis (http://www.jfreda.com/public/pdf/The%20Move%20Away%20from%20Stock%20Options.pdf) by James F. Reda & Associates, a compensation consulting firm."
I suppose it would take a monumental grassroots effort by small shareholders to effect a BOD change. I don't think it's apathy but a lack of coordination amongst small stakeholders to even know how to get an outsider unto the board and the existing board sure is not going to help.
And for what it's worth, I totally agree with your last paragraph.

[Joe Jensen]

"Options are a compensation tool designed to retain executives and reward performance. And while they are increasingly being replaced by shares of restricted stock (http://www.investopedia.com/terms/r/restrictedstock.asp) in executive pay, they still made up 31 percent of the average long-term incentive package in 2012, according to a 2013 analysis (http://www.jfreda.com/public/pdf/The%20Move%20Away%20from%20Stock%20Options.pdf) by James F. Reda & Associates, a compensation consulting firm."
I suppose it would take a monumental grassroots effort by small shareholders to effect a BOD change. I don't think it's apathy but a lack of coordination amongst small stakeholders to even know how to get an outsider unto the board and the existing board sure is not going to help.
And for what it's worth, I totally agree with your last paragraph.

The strange thing is that it seems at least for larger stable companies larger institutional investors hold a large portion of the shares. It would seem that they would be more active. At least with my employer we listen to what the large shareholders want to see.

[Henry Kramer]

Well, back to the original post. I have many old US made Delta/Rockwell machines ranging from the late 40's to the early 80's, a Powermatic PM66 Table Saw a PM100 planer and an old Dewalt RAS. Top notch quality on all of those machines. I needed to upgrade my 6" jointer to an 8" and I couldn't find anything good second hand so I begrudgingly ended up buying a new Powermatic 8" jointer. It's not a bad machine but the quality is just not what the US manufactured machines of 40-50 years ago, especially the cast iron table. Those old Delta tools (I put the Powermatic in the same ball park) are hard to beat.
HK

[Myk Rian]

Those old Delta tools (I put the Powermatic in the same ball park) are hard to beat.
That's a fac, Jac.

311741

[Henry Kramer]

That's a fac, Jac.

311741
It's a little hard to tell from the pic but it looks like a 37-315 Myk?

[Mark Blatter]

Companies exist to drive benefits for their shareholders (individuals, mutual funds, pension funds, etc). They do not exist for the benefit of consumers or workers. In this country we probably have hundreds of thousands of pages of laws and regulations around what you can and cannot do when running a company. Things like how much you have to have in the pension fund, etc. It's the duty of the CEO and the board of directors to maximize the profits of the company for the shareholders and that usually puts them at odds with the workers. In Arizona, all realtors have a legal obligation to maximize the seller's position. That's important because even if you have been working with a realtor who has shown you dozens of homes, their legal obligation is to the seller and not you their buyer. They never tell you that, but at least in AZ that's the law. The CEO is obligated to the shareholders and the board of directors (voted in by the shareholders) decide how the CEO is incentivized and paid. The board created a set of goals and rewards for the CEO to drive a set of goals. Sounds like the CEO met or exceeded the goals meaning he did exactly what the board wanted. The CEO above likely followed all the laws and worked to maximize what his personal pay package but that's what he was asked to do. When the public get all upset about CEO pay packages they are misdirecting their anger. The Board of Directors who are voted in by the shareholders of the company are responsible for setting goals and rewards. If the CEO drives to the goals and the results are bad then shame on the board.

I agree with you on this, but I think you are overlooking one important aspect. It is the responsibility of the CEO and B of D to maximize profits over the long run. Most US companies are managed for 1 - 2 quarters. At some point, Delta decided that making money now, at the expense of next year, was more important. CEOs mostly are in it for the big headlines (profits) for this quarter and year so they maximize their own bonus. By the time the chickens come home to roost, they have left for a bigger company and paycheck.

There are of course exceptions. Those are the companies I like to invest in, not the ones with CEOs on a bungee cord. There is a parallel in the buying community of course. Buying a table saw for $800 because it is 'good enough' but cursing it out every time you do a glue up and nothing fits. The most expensive tools I have ever bought are the cheap ones.

[Brad Patch]

Yep. The Delta we all knew and loved is no more. Parts for almost any legacy machine you have are scarce if not just plain unavailable:

311344

Parts for my Delta machines are in the "just plain unavailable" category but, I was able to make some and fake others. One painful aspect of the current point in this sad history is that many sellers websites still show parts as available. Several times I was given hope only to have it dashed a couple weeks later when the order hit the warehouse and the cupboard was found to be bare.

The new Delta offers a few machines and is trying to carry the badge forward.

Be aware, as I know many are that, there are two very active web sites Vintagenachinery.org and owwm.com. They offer excellent advice, downloadable original manuals and forums to assist owners of vintage machinery (not just Delta) with problems and the ability to advertise for vintage parts you may need. The good news is that vintage Delta machinery was produced in such numbers that there is a high likelihood that parts are available on the noted web sites. Be aware that no discussion of Chinese or Taiwanese machinery is allowed.

[Joe Jensen]

I agree with you on this, but I think you are overlooking one important aspect. It is the responsibility of the CEO and B of D to maximize profits over the long run. Most US companies are managed for 1 - 2 quarters. At some point, Delta decided that making money now, at the expense of next year, was more important. CEOs mostly are in it for the big headlines (profits) for this quarter and year so they maximize their own bonus. By the time the chickens come home to roost, they have left for a bigger company and paycheck.

There are of course exceptions. Those are the companies I like to invest in, not the ones with CEOs on a bungee cord. There is a parallel in the buying community of course. Buying a table saw for $800 because it is 'good enough' but cursing it out every time you do a glue up and nothing fits. The most expensive tools I have ever bought are the cheap ones.

I was not overlooking it, I am blaming the board of directors. The board hires and fires CEOs. The board approved the CEO's strategy and the annual spending, R&D, and revenue plans. When the CEO guts the company he is being directed to do that by the board. CEOs are a very visible target but the board has more of the responsibility. JC Penny is an interesting example. The board hired a new CEo because he proposed to radically change their business. He was on track to what the board wanted but when the biggest investors started calling for the CEO to be fired the board fired the CEO. Shareholders own the company, the board is voted in by the shareholders, and the board approves the hiring and compensation of all corporate officers. Any stock option plans for the company are also approved by the board.