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To: TigerPaw who wrote (62627)1/5/2003 4:16:13 PM
From: Wyätt Gwyön  Respond to of 77400
 
CEOs are afraid of dividends because it gets to money back to the shareholders before they have a chance to loot the company.

this is true. dividends reduce shareholder equity the date they are paid, so scumbag CEOs who depend on large option packages for 95% of their pay don't like it. among the best reasons to pay dividends is that otherwise scumbag CEOs will either take the money for themselves or blow it on stupid investments. the hundreds of billions in writeoffs these past couple years show this to be so. this is the "agency problem".



To: TigerPaw who wrote (62627)1/5/2003 5:42:31 PM
From: GVTucker  Respond to of 77400
 
TigerPaw, RE: CEOs are afraid of dividends because it gets to money back to the shareholders before they have a chance to loot the company.

There is a depressingly high probability that this is true.

Reductions in the tax rate of dividends have come up continually over the past few decades, going back to Carter's economic proposals in the late 70's. In every single instance, the primary lobby AGAINST this reduction has been the Business Roundtable or a similar entity.


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