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Technology Stocks : Intel Corporation (INTC)
INTC 50.44+4.5%11:05 AM EST
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To: Amy J who wrote (180905)4/26/2005 8:54:09 PM
From: Saturn V  Read Replies (2) of 186894
 
Amy
Motorola is no longer a semiconductor company at all. Its semiconductor operations were spun out to Freescale Semiconductor and ON Semiconductor.

Motorola is now viewed as a cell phone and communication company. All semiconductor stocks are in the dog house, and Motorola escaped that fate by spinning out its semiconductor operations.

Yes there is indeed a lack of corporate governance in US boardrooms. Intel has a much better track record than most companies.

Barret is looking bad because of the poor stock performance on his watch. However most semiconductor companies have done just as bad.

Which leads to following question how accountable should a CEO be for the the companies stock performance ? The Enron experience should convince people that compensating the CEO solely by the stock, leads to dangerous and disastrous manipulation, which can destroy the company and the shareholders left holding the bag. During the internet bubble and the growth stock bubble of early seventies the CEO were rewarded for "managing earnings" to show a consistent and predictable growth rate. The analysts loved the predictability of the earnings growth and inflated the PE multiples of Cisco and the nifty 50 growth stocks of the 70's. However the growth predictability was a mirage and could not be sustained for long. By the time the crash came, the CEO had cashed out, and the suckers who bought the high multiple stocks were left holding the bag.
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