Tuesday, August 09, 2005

Weak corporate directors . . .

Hey, I've been complaining about this for years. My wife just nods and doesn't pay attention because she's heard it before. If I mention the subject in a class dealing with corporations, the class just nods and tries to pretend that they are interested. (Bless their hearts, one and all.) I was starting to think I was a crank on the subject.

Weak Boards of Directors are screwing the shareholders when they give in to the exorbitant salary demands of corporate presidents. Especially when they screw up. There needs to be a little shareholder rebelliousness interjected into the annual meetings. And why isn't there any? Because institutional shareholders, like pension funds and mutual funds and the like, are managed by people who don't conceive of themselves as shareholders who are being screwed out of money. They should. And let me tell you what. If a few major institutionals dump shares in a noisy fashion in response to International Belchanburp, Inc.'s new salary agreement with the president to pay $12,000,000, plus double that in stock options, with a $140,000,000 golden parachute, I think that people would take notice.

Now that somebody else is complaining, well, I don't feel like a crank after all.

Now, can I get any love on the proposition that the majority of bankruptcy abuse occurs in Chapter 11 filings?

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