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To: hueyone who wrote (174869)6/16/2003 3:34:56 PM
From: Lizzie Tudor  Read Replies (1) | Respond to of 186894
 
I would further speculate that private investor/owner's standards of what is acceptable company business performance for a private company is generally more stringent than a public investor's/owner's standards of what is acceptable company business performance for a public company.

SAS offers employee benefits that dwarf any public company I know. They offer cradle to grave healthcare for entire families, for one thing. Housing loans to employees, you name it. If they were public, the public markets would look for higher "revenue per employee" numbers and other metrics that SAS rejects. SAS is not embarking on any outsourcing of software talent to india now, which means that by industry standards their costs are high. So I don't think its accurate to claim that private companies are somehow more "stringent" wrt investor money. The truth is the money is allocated to fewer people at the top, and the company is not held to the same profitability standards that WS requires.