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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (89188)	10/26/2008 2:00:18 AM
From: Sr K	Respond to of 116555

<<Interveiw with Fed x CEO.<< Fed is not FedEx. "Fed x" is not FedEx. The Fed doesn't have a CEO or an ex-CEO. But thanks, I hadn't read it yet. I highly recommend it. >>As he sees it, "There's only one solution, and that is for a competent board of directors to oversee managers and give them incentives which are long-term in nature and which are irrevocably tied to the fortunes of the shareholders." << Congress seems to be onto this, because the warrants the U.S. is getting from banks and other conditions, including clawbacks, have opened the door to looking at multi-year returns or clawing back bonuses if the earnings that trigger them are later reversed. If Congress does this (for the Rescue Package beneficiaries), it will shine a light on this area of compensation. Bonuses should be aligned with shareholders' interests. In the excerpt above the word "irrevocably" is key.