AMF:
Some industry observers, such as Mr. Gartman, say insiders cashing out is one indication that they don't have much faith in the company.
"If you believe in your company, you ought to be holding your shares," he said.
I have always said that the periodic selling by JDSU execs is a problem for me. Especially at this price. The implication is it is not a good time to buy, and the stock will not be higher any time soon. Why in the face of that, this stock improves, is beyond me.
Having said that, you can't have your cake and eat it too. I do not agree with concerns regarding executive options: yes, they are a loaded gun, but just one of many around the board table.
The entire BOD is strongly motivated to go along with inflated and outright crooked books: all the insiders make money on those deals.
The CEO is told (either directly or indirectly): it is your job to imply, coerce, sing and dance. Ordinary returns are of absolutely zero interest to us investors. Do whatever you have to do to make us above average returns. And by the way, if you get caught, these days you go to jail, not just the unemployment line. And by the way again, if you do not get above average returns, you are fired.
So a prospective CEO would have to be an idiot to take the job without the possibility of making a substantial portion of what the "insulated" directors (most of whom are investment bankers or representatives for investment bankers) are making. In other words, those other directors who are as independent as the companies Enron was trading with.
OTOH, who is going to represent the interests of the investors independently? Some guy off the street?
I have said it before: the entire BOD should sign the books...not just the CEO and CFO. The CEO/CFO both report to the BOD for some reason, right?
JMHO
-Own |
