To: Joe NYC who wrote (108571 ) 5/1/2000 12:47:00 PM From: pgerassi Respond to of 1571821
Dear Jozef: When a company steadfastly refuses to keep its agreements both in spirit and in deed, making rules does not fix the problem. The only solution is to drastically change the management, ergo breakup. Since the government can not affix the blame, (although some are heavily implicated), the only SURE way to stop the practice is to stop the ability to do it. Thus, breaking Microsoft into 2 or 3 entities in different markets, is the only logical way to proceed. Forcing members to choose which of the two companies to join, at least punishes the recalcitrant management for these practices. However, I think that, certain responsible parties should pay a personal fine. They agreed to stop certain practices, and still did them anyway (with a few cosmetic changes). A fine of Half of Bill Gates and other parties personal stock, would show a strong message that these practices are not to be tolerated. The stockholders also bear some responsibility by not selling the stock when the allegations came out. Those stockholders benefited, now they must pay the penalty. If your company is caught doing wrong, the people responsible, plus the board, and the stockholders bear the penalties and the cost. Although in the Microsoft case, where the principals in these crimes, are also on the board and between them had sufficient control of the company, the stockholders should be not materially affected. In most cases, it is the stockholders who bear the costs from the deception of the principals, who made the stock look more attractive than it would be had they stuck to the straight and narrow reading of the law. I know many policyholders in Insurance Companies got "the shaft" when management screwed up and played in riskier investments than what they were allowed to. Some, including my parents, practically lost the entire investment. And those responsible, did not even get a "Slap on the Wrist". Just because the "poor" Microsoft shareholders are losing half, or more of their investment, does not appear to be as bad as the former. They will have something after the breakup. Pete