Tuesday, May 16, 2006

 

Bruce Smith Isn't Apologetic

USA Today interviewed Bruce Smith the CEO of Tesoro about running a company that most people currently have negative opinions about. Tesoro's revenues were up 35% in 2005 and their profits up 55%. If you can set aside the fact that we are all suffering from high gas prices and come at it from a strictly business angle, I can see his point of view when he says (concerning Hurricane Katrina) "We don't create bad news. There's no question that when a refinery goes down, it affects the market. In this case, it was a large disaster and something I hated to see happen to the economy and the people. But for our shareholders, it's good news, and we are in business for our shareholders."

He also gives some tips:
• Don't hide from controversy. Educate the public. Explain your point of view. Be honest.
• Don't be ashamed to make money. That's your job.
• Control costs in good times and bad.
• Expect gasoline prices to remain volatile, but long term, expect them to go down.
• Don't hold out much hope for alternative energy.

Overall I thought the article was pretty interesting, it reminded me of the Godfather when Michael says to Sonny that its just business, not personal.

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