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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: mepci who wrote (15235)	8/17/2002 11:39:35 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78507

mepci Yes, I have read some of your recent posts on the DELL thread. Interesting concepts! I'm thinking about your proposals, but haven't really come to any conclusions because I'm not clear enough in my understanding of the ramifications to be certain we wouldn't be creating just as many problems as we might solve. For instance: The board should be completely independent and handle the allocation and even management of employees trusts and bonus distribution. CFO should be an employee of the board. I believe that part of the function of a Board of Directors (BOD) is to conduct their oversight in an manner which accomplishes their function while promoting the smooth and efficient conducting of business by the company whose operations they oversee. In our horror over the abuses of the current system, we must be careful that what we implement as corrective measures don't have the hidden result of making it impossible for American businesses to do business aggressively and nimbly, too much power on the BOD could turn that nimbly part off. If great managers see opportunity and can't seize the moment, the aggressive part may wither away as well. The problem appears to be loopholes in the current system that make it legal to both transfer an immense percentage of the profits of public companies to insiders on the one hand and to take corporate expenses and transfer them to the shareholder and thus not count them as expenses against income on the other. These kind of problems are corrected most effectively (IMO) by regulation which protects the investor's profits and require corporations to fully expense all costs of doing business, and such regulation must have strict enforcement and stiff penalties. Timba