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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (75750)	6/8/2024 9:24:55 AM
From: E_K_S	Read Replies (1) \| Respond to of 78476

Good question - Let's ask perplexity.com AI LEG -how do the ceo purchases compare to his salary as ceo? I also wonder whether the package that he got included company financing of the stock purchase. there are no specific details about Karl G. Glassman's salary or compensation package as the new CEO of Leggett & Platt. The information focuses more broadly on CEO compensation trends across S&P 500 companies.However, we can make some inferences: Glassman's insider purchase of 23,800 shares worth around $273,000 is a significant amount, but likely pales in comparison to his total compensation package as CEO. The median total compensation for S&P 500 CEOs in 2023 was a staggering $16.3 million. There is no indication in the search results that Leggett & Platt provided company financing or assistance for Glassman's stock purchase. CEO stock purchases are typically made with their own funds as a show of confidence in the company's prospects. It is common for a large portion of CEO compensation to be in the form of stock awards and options, which are tied to company performance goals. While the details of Glassman's compensation package are not provided, it likely includes substantial equity-based pay components in line with industry practices. In summary, while Glassman's $273,000 stock purchase is significant for an individual, it does not compare favorably to the multi-million dollar compensation packages that are typical for CEOs of major S&P 500 companies like Leggett & Platt. There is also no evidence that the company financed or assisted with his stock purchase, which appears to be a personal investment using his own funds Looks like Perplexity could not find anything specific on if the company helped finance the purchase and/or it was part of a company stock package. Remember he was the previous CEO they are bringing back so it's possible there may be something in part of that package. Will check from time to time and will look at the 8K when released. LEG still has a long road to hoe.

To: Madharry who wrote (75750)	6/14/2024 5:13:17 PM
From: Harshu Vyas	Read Replies (1) \| Respond to of 78476

Been thinking a lot about this "company financing" insider purchases thing. Recently read up about HealthSouth - Encompass Health - Wikipedia - and went through their 2002 Proxy Statement - sec.gov/Archives/edgar/data/785161/000100515002000531/nps.txt - where such loans seem to have been properly disclosed (p13 is where it's first mentioned). Shareholders, if they knew about it, would have been mad to take it lightly. My thinking is that shareholders just didn't bother reading the Proxy so they never knew to begin with! Imo, it has to be disclosed (especially with today's strenuous regulations) and I'm yet to find a company where the company completely failed to give shareholders an inkling of what was going on (even if it was "lazily" disclosed). I get the feeling loans to executive officers etc. is a thing of the past, especially in the US. Perhaps in other countries (UK, Canada etc), it's not monitored as closely. That said, I'm trying to run searches for companies that are getting involved in this "funny business". Maybe old tricks are being recycled 25 years on. Though, I'm not getting too hopeful. ======================================================================================== Really, though, my biggest ick in today's proxy is that there are too many companies that use "adjusted EBITDA" as a performance measure linked to exec compensation. If I was a manager and I knew that that was the case, the first thing I'd do is borrow money and go on an multi-year acquisitive spree. Then, a year or two later after each acquisition, depending on when it suited me, I'd take a massive restructuring charge with loads of favourable provisions that can aid me down the line and then let the "adjustments" continue to cough up cash for me. After exercising millions in stock options (and excessive cash bonuses), I'd leave to repeat the same strategy at a bigger company... Oh wait! This sounds awfully familiar. Seems I don't need an MBA to think like most CEOs of corporate America. It also really irks me that the Board of Directors have become useless in recent times (there are exceptions, of course). IHRT is my favourite example of a "disasterclass" in corporate governance.