[Chugalug] TWINKIES!!!

Chad Smith chad78 at gmail.com
Mon Dec 3 03:04:35 UTC 2012

I agree that very few stockholders do take an active interest in the
companies they own stock in - however the Board, who is there on the behalf
on the stockholders - has a vested interest in the company succeeding.
 While it is true that there is a difference between the company doing well
and the stock doing well - if the company goes belly up the stocks are

So unless you believe the board of directors on multitudes of companies are
receiving some sort of kick back from the Execs' Golden Parachute that is
enough to screw over the stockholders that put them on the board in the
first place - then I think there is another problem.  Something perhaps
more basic and less devious.  Something like people really believe in the
power of one person being able to come in and "save the company".  I think
that fairy tale - which, I admit, does have some real life examples of
working - is destructive far more often than it is helpful.

I mean, in the minds of the Board, if this one guy can come in and "save
the company" then its worth 10% of a years profit to get him to sign up.  I
mean, if it ends up giving the company 50 more years of profit.

Not every exec is Steve Jobs, Lee Iacocca, Thomas Edison, Sam Walton, or
Bill Gates.  Not every company needs an all powerful leader.  They are
looking for a magic bullet when they need to do some serious restructuring
- and that doesn't mean just laying a bunch of the lowest paid people off -
that means literally restructuring.  Rebuilding the way the company does
business.  That takes hard work, good ideas, a willingness to try new
things and let go of old things, and is just as likely to end in failure as
not.  But it's more likely to fix the problem than just hiring Mr. Hot Shot
Big Wig CEO.

*- Chad W. Smith*

On Sun, Dec 2, 2012 at 8:13 PM, Dan Lyke <danlyke at flutterby.com> wrote:

> On Sun, 2 Dec 2012 12:49:28 -0600
> Chad Smith <chad78 at gmail.com> wrote:
> > Stockholders who don't care if the company does well or not...
> > That's a new piece of FUD for the class warfare I haven't heard yet.
> You're missing a nuance: There's a substantial amount of economic
> friction between the process of having money in a 401k mutual fund and
> taking an active interest in the running of a company.
> The management class we're all whining about is strip-mining that space.
> Dan
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