Tuesday, July 14, 2009

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

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  2. **AGENTS FOR CHANGE - THE SISTER GROUP FROM FACEBOOK**

    Good Evening all!

    AGENTS FOR CHANGE was created in hopes of providing a backup voice for the concept's creator, Stephen P. Hartnett. I will not presume to have the authority to actually commit to a mission statement, but I think I can sum up the goals and the outlook of the group and its members:
    We believe that EXCESSIVE executive compensation has caused almost insurmountable damage to the American Nation and her foundation as a capitalistic State. Executives of large corporations (**not all execs, mind you, but a percentage**), have raped not only the company but the rights and peace of mind of the American people, the Shareholders, and the capitalistic Ideal. Examples of this are, unfortunately, incalculable, and several of them have been used as examples for congress. Since the conception of this group only a few short months ago, this small grass roots movement has created a ripple effect that can be felt all the way to Washington, as evidenced by the President's response to Mr. Hartnett's efforts, and the drafting of bill (pending) - this is a very exiting time for our members, because it has become obvious that we are being heard! Now that we have the attention of policy makers and the White-house, it is VITAL that we work even harder to impress upon them the importance of not allowing these violations to continue and remind them of the consequences that are inevitable if this type of executive frivolity continues! **AND THEN BEGINS STAGE II** Naturally, different people with different agendas will want to twist and manipulate this issue to meet their own end, and this could very well destroy the spirit in which this group and others like it, was founded upon. Therefore, VIGILANCE with congress, media, and the overall American mood is essential. Perhaps even more importantly, is keeping up-to-date with the LAWS, RULES, AND REGULATIONS regarding executive change (and being on the lookout for loopholes). We certainly don't want to see a knee-jerk reaction that thwarts the spirit of capitalism in its true form, but would like to see the executives of large corporations become ACCOUNTABLE AND TRANSPARENT (insofar as realistically possible) to the investors of their companies and the consumer. This means proving their monetary worth and justifying their compensation to not only their board, but to the company's shareholders as well. It's about accountability and honest business! The Shareholders are the very cornerstone of any private company, and must be able to TRUST those that are manning the vessel! Remember, the Shareholders should always come first, and without them, there is no investment, no company......
    With Gratitude,
    Dionne A. Hartnett

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