Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: 4figureau who wrote (3402)	2/23/2003 5:05:42 PM
From: Mac	Read Replies (1) \| Respond to of 5423

The US dollar index looks like it has a high probability of breaking down over the next few weeks.

To: 4figureau who wrote (3402)	2/24/2003 1:38:27 AM
From: russet	Respond to of 5423

Take Away Managers' Stock Options Interview by Donna Guzik If you want managers to act in their shareholders' best interests, take away their company stock, says Rotman School of Management, U of T Dean Roger Martin "I am not arguing that stock-based compensation is bad for managers...I'm arguing that it's bad for outside shareholders." Summary Managers will act in shareholders' best interests if you take away their company stock options according to Roger Martin. Some CEOs argue that in order to attract the most talented employees you have to offer compensation through stocks or options. Martin believes that argument is self-fulfilling by CEOs who then turn around to their compensation committees and demand increased rewards based on what they've offered their new hires. Compensation that would benefit both managers and shareholders are based on increasing real earnings over periods of time. Royalties create an incentive for employees to create something that will sell well and produce earnings for the company. One of the problems of the dot.com era was that these companies were trading at 100 times earnings when there were no earnings. So entrepreneurs were being paid for performance that had not yet been realized. Compensation should not be advanced, it should be given for a job well done. There needs to be a complete overhaul of compensation rules and committees. We need more accurate disclosure, currently, insiders don't have to disclose their trades until the first day of the month after the sale. That's too late. Mr. Martin says insiders should have to disclose their intent to sell at a future date so the information is in the market in case other shareholders want to act on that decision. The second thing that needs to be changed is securitization. It is completely legal for an insider to sell the upside of their stock through a securitized transaction to a third party and then keep the principle; it's a way of bailing out without having legally disclose it. That disclosure doesn't have to take place until 25 years later and according to Martin, this happens all the time in both Canada and the U.S. Protest and an increasing backlash are bound to change things.