Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 136.55

-2.9%

11:13 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Geoff Nunn who wrote (49166)	6/27/1998 2:24:00 AM
From: Chuzzlewit	Read Replies (1) of 176387

Good evening Geoff, Let me clarify. A rational approach to explain fighting for market share is premised on maximizing shareholder value. This implies maximization of the present value of future cash flows. Unfortunately, you are correct in your criticisms. Managers all too often act in their own interests rather than the shareholders' interests. Golden parachutes, profit sharing, repricing of options, highly dilutive friendly mergers ... the list goes on and on. Nevertheless, it is difficult to explain how a fight for market share increases manager's compensation when profit is compromised. I'm thinking that Compaq management just blew it. Perhaps they didn't count on the reaction they got from IBM and HWP. I've been thinking that those mergers using stock at a large premium over market may be another example one of those shareholder be damned transactions. If management is paid on a percentage of total profits rather than a formula based on earnings per share, that means that they look fovorably on any acquistion where there is positive earnings from the acquired company. Accretive for the management is not necessarily accretive for the shareholders. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next