Almost forgot….a new academic study was just completed that shows companies increasing market share and growing their asset base are UNDERPERFORMING companies (as judged by their share price) that are holding steady with asset base and market share. How can this counterintuitive fact be reality? In my opinion, the reason lies again with that nasty exec comp issue. Think about it. If an executive can grow his market share and asset base he can justify a bigger pay package. The problem is he usually does it by over paying for assets in ill conceived buyouts. If the company over pays for the asset the stock price suffers but he is now at the helm of a bigger ship so he demands more comp. Just another example of the incongruent reality of execs self interest and the companies best interest.

Steve

Agents of change,

Received a nice letter from VP Joe Biden. He was very encouraging to our efforts. No update on the Durbin bill yet. Hopefully it will be well conceived. It does address many of our concerns.

More to come.

Steve Hartnett