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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (3789)	2/8/2016 12:27:31 PM
From: robert b furman	1 Recommendation Recommended By Return to Sender Read Replies (1) \| Respond to of 27051

I do think that executive pay is out of line. They have incremented up their pay by hiring consultants who review their "peers" and then set the pay at the 50% mark - regardless of profitability. This is a self fulfilling prophecy - as a group they have all had bracket creep. I can remember back in my GMI days I was buying Texas instruments because their parking lots were gravel vs the more expensive concrete. Even back in the 80's Cohu had very low top salaries - after the dot com bomb the salaries skyrocketed since all of the options were worthless. Then restricted sales units came out. It is fair to review the top guys pay with a laborers / workers pay - not the lowest entry level and perhaps more like the highest most senior laborer's pay rate. CEO's are higher educated and most are also high seniority employees. They do have the responsibility of the corporations assets and that is a big chore - so they should get top pay. Top pay with stability - cash bonus at year end and options pay with exceptional performance. Their salary increases should be directly linked with stockholder's return on investment. All that salary top pay comes with big taxes - much of which the corporation must pay - so link with the other stockholders and their return. Options pay must be controlled with an equivalent buyback of shares outstanding. I hate that options candy dilutes a stockholder's ownership. We paid hard earned dollars to have our positions. Most f managements think stockholders are just casino gamblers. I find when I visit them they are very intrigued to find a stockholder who can talk about their models and equipment. Or even ask questions about how this or that works. I think all too often as stockholders we are deficient in letting management know we are out there and reliant on the dividends and their performance. It is a two way street and I try to be a good stockholder who communicates my personal viewpoint. Bob