Businessweek has a good article on the problems at EDS. In my opinion, the main problem is that Richard Brown is an idiot. Optimism is fine and dandy, but time after time companies have proven that being fiscally conservative pays off. Brown bet on the EDS stock price, which is basically gambling – not something a good CEO would do with company money. If he really believed the stock was undervalued, EDS should have bought it back.
