Eric Jackson - Seeking Alpha 'Eric Jackson' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/eric-jackson 7 Steps Towards Real Free Market Capitalism http://seekingalpha.com/article/172664-7-steps-towards-real-free-market-capitalism?source=feed 172664 Market commentators and the White House have been quick to blame last year’s economic meltdown on a free market run amok. And they’ve used that false assumption to justify their unprecedented response of government intervention and increased regulation.

But we’ve never really had free market capitalism in this country. The last 30 years of America’s market system is better described as “mixed crony capitalism” – one part capitalism, one part government intervention through various programs, and one part corporate cronyism where officers and directors of big businesses pay themselves more, lobby politicians on both sides of the aisle and gain more power through favorable governmental regulations including mergers.

]]> Wed, 11 Nov 2009 03:07:24 -0500 Eric Jackson Market commentators and the White House have been quick to blame last year’s economic meltdown on a free market run amok. And they’ve used that false assumption to justify their unprecedented response of government intervention and increased regulation.

But we’ve never really had free market capitalism in this country. The last 30 years of America’s market system is better described as “mixed crony capitalism” – one part capitalism, one part government intervention through various programs, and one part corporate cronyism where officers and directors of big businesses pay themselves more, lobby politicians on both sides of the aisle and gain more power through favorable governmental regulations including mergers.


Complete Story »]]> BAC C Eric Jackson What the SEC Should Learn from Galleon http://seekingalpha.com/article/171380-what-the-sec-should-learn-from-galleon?source=feed 171380 The government's case against Raj Rajaratnam, founder of hedge fund Galleon Group, on the charge of insider trading, alleges that the hedge fund manager's primary competitive advantage for investors was a web of connections close to or inside technology companies feeding him illegal tips on future directions of the companies' stock prices.

What's shocking is how Rajaratnam is accused of having, over at least 10 years, cultivated a network of insiders feeding him nonpublic information about future earnings announcements from public companies like AMD (including its former CEO), IBM, Intel (INTC), and some of their most prestigious advisers like McKinsey & Co.

]]> Thu, 05 Nov 2009 02:10:36 -0500 Eric Jackson The government's case against Raj Rajaratnam, founder of hedge fund Galleon Group, on the charge of insider trading, alleges that the hedge fund manager's primary competitive advantage for investors was a web of connections close to or inside technology companies feeding him illegal tips on future directions of the companies' stock prices.

What's shocking is how Rajaratnam is accused of having, over at least 10 years, cultivated a network of insiders feeding him nonpublic information about future earnings announcements from public companies like AMD (including its former CEO), IBM, Intel (INTC), and some of their most prestigious advisers like McKinsey & Co.


Complete Story »]]> Eric Jackson Icahn Should Give Up Running Other People's Money http://seekingalpha.com/article/169609-icahn-should-give-up-running-other-people-s-money?source=feed 169609 After a string of disastrous investments and his departure from Yahoo!'s (YHOO) board last Friday, it's time for Carl Icahn to hang it up running other people's money. Here's why.

Icahn's decision to leave the Yahoo! board comes a year after mounting a costly and distracting proxy contest to get elected. That's his right, of course. After all, investors in his Icahn Partners hedge fund were the ones who footed the bill for his efforts.

]]> Wed, 28 Oct 2009 16:08:17 -0400 Eric Jackson After a string of disastrous investments and his departure from Yahoo!'s (YHOO) board last Friday, it's time for Carl Icahn to hang it up running other people's money. Here's why.

Icahn's decision to leave the Yahoo! board comes a year after mounting a costly and distracting proxy contest to get elected. That's his right, of course. After all, investors in his Icahn Partners hedge fund were the ones who footed the bill for his efforts.


Complete Story »]]> MSFT YHOO Eric Jackson The Truth in Lessig's Critique of Transparency http://seekingalpha.com/article/168103-the-truth-in-lessig-s-critique-of-transparency?source=feed 168103 Lawrence Lessig's recent thought-provoking article in the New Republic challenges the assumption that more sunlight is always a better disinfectant for corruption and bad behavior than less.

Although his primary focus is on how more transparency doesn't always lead to better political outcomes, there are obvious implications of his argument to the world of corporate governance and executive compensation.

]]> Thu, 22 Oct 2009 08:40:13 -0400 Eric Jackson Lawrence Lessig's recent thought-provoking article in the New Republic challenges the assumption that more sunlight is always a better disinfectant for corruption and bad behavior than less.

Although his primary focus is on how more transparency doesn't always lead to better political outcomes, there are obvious implications of his argument to the world of corporate governance and executive compensation.


Complete Story »]]> MCO MHP RMG Eric Jackson HP Employee Disgruntlement Runs Deep http://seekingalpha.com/article/165651-hp-employee-disgruntlement-runs-deep?source=feed 165651 My post a few weeks ago on Mark Hurd's perks at HP (HPQ) has generated a lot of traffic and email comments -- especially from current or former HP/EDS employees.

Here is a link from one ex-EDS'er in Germany upset at the way things have played out.

]]> Fri, 09 Oct 2009 03:58:00 -0400 Eric Jackson My post a few weeks ago on Mark Hurd's perks at HP (HPQ) has generated a lot of traffic and email comments -- especially from current or former HP/EDS employees.

Here is a link from one ex-EDS'er in Germany upset at the way things have played out.


Complete Story »]]> HPQ Eric Jackson Yahoo! CEO Carol Bartz's Continued Share Dumps Reflect Poorly on Leadership http://seekingalpha.com/article/165419-yahoo-ceo-carol-bartz-s-continued-share-dumps-reflect-poorly-on-leadership?source=feed 165419 Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

As predicted last month, when I first raised this issue, Yahoo! (YHOO) disclosed late Friday that Carol Bartz had sold another $1.3 million of Yahoo! stock at the end of September. This brings her total Yahoo! share sales for the year to $3.3 million.

]]> Thu, 08 Oct 2009 02:50:12 -0400 Eric Jackson Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

As predicted last month, when I first raised this issue, Yahoo! (YHOO) disclosed late Friday that Carol Bartz had sold another $1.3 million of Yahoo! stock at the end of September. This brings her total Yahoo! share sales for the year to $3.3 million.


Complete Story »]]> YHOO Eric Jackson Wynn's CEO Starts Cashing Out http://seekingalpha.com/article/165415-wynn-s-ceo-starts-cashing-out?source=feed 165415 Steve Wynn and his chief operating officer are pushing back from the table.

Since the end of July, Steve Wynn has sold $114 million worth of shares in Wynn (WYNN) and his Chief Operating Officer Marc Schorr has sold over $7 million. It's the first time in the last decade that Wynn has sold such a large chunk of shares. For Schorr, the proceeds from his sale exceeded his average annual total compensation over the past three years.

]]> Thu, 08 Oct 2009 02:24:47 -0400 Eric Jackson Steve Wynn and his chief operating officer are pushing back from the table.

Since the end of July, Steve Wynn has sold $114 million worth of shares in Wynn (WYNN) and his Chief Operating Officer Marc Schorr has sold over $7 million. It's the first time in the last decade that Wynn has sold such a large chunk of shares. For Schorr, the proceeds from his sale exceeded his average annual total compensation over the past three years.


Complete Story »]]> LVS MGM WYNN Eric Jackson While eBay Burned, Whitman Fiddled http://seekingalpha.com/article/164192-while-ebay-burned-whitman-fiddled?source=feed 164192 I've recently criticized Yahoo!'s (YHOO) Carol Bartz and Hewlett-Packard's (HPQ) Mark Hurd for excessive pay and perks, given their companies' performances.

My focus on Silicon Valley gluttony would be incomplete without discussing the perks at eBay (EBAY).

]]> Thu, 01 Oct 2009 03:39:11 -0400 Eric Jackson I've recently criticized Yahoo!'s (YHOO) Carol Bartz and Hewlett-Packard's (HPQ) Mark Hurd for excessive pay and perks, given their companies' performances.

My focus on Silicon Valley gluttony would be incomplete without discussing the perks at eBay (EBAY).


Complete Story »]]> EBAY Eric Jackson Yahoo Board Director Maggie Wilderotter Makes for the Door http://seekingalpha.com/article/163894-yahoo-board-director-maggie-wilderotter-makes-for-the-door?source=feed 163894 Maggie Wilderotter -- the most recent addition to Yahoo!'s (YHOO) board, joining in July 2007 (not including Carl Icahn and his band of merry men who joined last September) -- is now its most recent departing director. She gave the company notice last week that she plans to step down at the end of the year.

The fact that she's leaving is "not due to any disagreement with the Company on any matter related to the Company’s operations, policies or practices."

]]> Tue, 29 Sep 2009 09:27:56 -0400 Eric Jackson Maggie Wilderotter -- the most recent addition to Yahoo!'s (YHOO) board, joining in July 2007 (not including Carl Icahn and his band of merry men who joined last September) -- is now its most recent departing director. She gave the company notice last week that she plans to step down at the end of the year.

The fact that she's leaving is "not due to any disagreement with the Company on any matter related to the Company’s operations, policies or practices."


Complete Story »]]> FTR PG XRX YHOO Eric Jackson Shareholders Must Put an End to Decoupled Pay-for-Performance http://seekingalpha.com/article/163597-shareholders-must-put-an-end-to-decoupled-pay-for-performance?source=feed 163597 Over the past 2 weeks, I’ve criticized Yahoo!’s (YHOO) Carol Bartz and HP’s (HPQ) Mark Hurd for excessive pay and perks, given their companies’ recent performance. It’s been interesting to read the many emails I’ve received on the articles – mostly from employees of both companies.

A few emails – maybe 5% -- take the CEO’s side and make the case that paying our leaders a lot of money is part of our capitalist system. Their advice to me: get over it already.

]]> Sun, 27 Sep 2009 07:24:03 -0400 Eric Jackson Over the past 2 weeks, I’ve criticized Yahoo!’s (YHOO) Carol Bartz and HP’s (HPQ) Mark Hurd for excessive pay and perks, given their companies’ recent performance. It’s been interesting to read the many emails I’ve received on the articles – mostly from employees of both companies.

A few emails – maybe 5% -- take the CEO’s side and make the case that paying our leaders a lot of money is part of our capitalist system. Their advice to me: get over it already.


Complete Story »]]> HPQ YHOO Eric Jackson HP's Executive Comp Is Troubling in a Year of Worker Pay Cuts http://seekingalpha.com/article/163169-hp-s-executive-comp-is-troubling-in-a-year-of-worker-pay-cuts?source=feed 163169 Mark Hurd was brought in to take the helm at Hewlett-Packard (HPQ) in 2005.

He's well regarded by Wall Street for turning the company from a bureaucratic has-been to a market leader again. In the first 2 1/2 years of Hurd's tenure as leader, HP's stock increased 137%. For the last two years, however, HP's stock performance has been mediocre, dropping 5%. Although that was better than the Nasdaq, it tracked that index very closely over that period.

]]> Thu, 24 Sep 2009 08:25:38 -0400 Eric Jackson Mark Hurd was brought in to take the helm at Hewlett-Packard (HPQ) in 2005.

He's well regarded by Wall Street for turning the company from a bureaucratic has-been to a market leader again. In the first 2 1/2 years of Hurd's tenure as leader, HP's stock increased 137%. For the last two years, however, HP's stock performance has been mediocre, dropping 5%. Although that was better than the Nasdaq, it tracked that index very closely over that period.


Complete Story »]]> DELL HPQ Eric Jackson Are Yahoo's Charitable Donations Right and Proper? http://seekingalpha.com/article/162864-are-yahoo-s-charitable-donations-right-and-proper?source=feed 162864 If I told you that Yahoo! (YHOO) had made a charitable contribution to an American University in the last year, which one would you guess? Stanford University, where Jerry and David dreamed up the company in the computer labs more than a decade ago? Cal? San Jose State? Try Duke.

You probably weren't familiar with a long fabled relationship between the Silicon Valley-based Internet company and the fine academic institution on the other side of the country on Tobacco Road. Let me connect the dots for you. Yahoo!'s Chairman, Roy Bostock, and fellow director, Gary Wilson (both appointed by former CEO Terry Semel), serve on the board of the Fuqua School of Business at Duke.

]]> Wed, 23 Sep 2009 03:29:07 -0400 Eric Jackson If I told you that Yahoo! (YHOO) had made a charitable contribution to an American University in the last year, which one would you guess? Stanford University, where Jerry and David dreamed up the company in the computer labs more than a decade ago? Cal? San Jose State? Try Duke.

You probably weren't familiar with a long fabled relationship between the Silicon Valley-based Internet company and the fine academic institution on the other side of the country on Tobacco Road. Let me connect the dots for you. Yahoo!'s Chairman, Roy Bostock, and fellow director, Gary Wilson (both appointed by former CEO Terry Semel), serve on the board of the Fuqua School of Business at Duke.


Complete Story »]]> YHOO Eric Jackson Microsoft's Distasteful Plans to Save Us from the Housing Crisis http://seekingalpha.com/article/162665-microsoft-s-distasteful-plans-to-save-us-from-the-housing-crisis?source=feed 162665 Kudos to Michelle Leder at Footnoted for spotting another distasteful perk paid for by hapless shareholders. This one was at Microsoft (MSFT) -- which is a long holding of mine.

Microsoft has earned some praise recently among those who promote good corporate governance practices for blogging (I guess that demonstrates openness, but what's the big deal?) and proactiviely allowing a triennial (once every 3 years) shareholder vote on executive compensation. I guess every dog has his "say on pay" day -- once every 3 years, at least.

]]> Tue, 22 Sep 2009 02:51:24 -0400 Eric Jackson Kudos to Michelle Leder at Footnoted for spotting another distasteful perk paid for by hapless shareholders. This one was at Microsoft (MSFT) -- which is a long holding of mine.

Microsoft has earned some praise recently among those who promote good corporate governance practices for blogging (I guess that demonstrates openness, but what's the big deal?) and proactiviely allowing a triennial (once every 3 years) shareholder vote on executive compensation. I guess every dog has his "say on pay" day -- once every 3 years, at least.


Complete Story »]]> MSFT Eric Jackson Yahoo CEO Bartz Has a Lot of Explaining to Do http://seekingalpha.com/article/162201-yahoo-ceo-bartz-has-a-lot-of-explaining-to-do?source=feed 162201 Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

Yahoo! (YHOO) CEO Carol Bartz didn't get the "boatloads of cash" for her shareholders from Microsoft (MSFT) as she vowed in May, but she'll take home a boatload of cash herself out of Yahoo! for her work in 2009.

]]> Fri, 18 Sep 2009 05:16:53 -0400 Eric Jackson Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

Yahoo! (YHOO) CEO Carol Bartz didn't get the "boatloads of cash" for her shareholders from Microsoft (MSFT) as she vowed in May, but she'll take home a boatload of cash herself out of Yahoo! for her work in 2009.


Complete Story »]]> MSFT YHOO Eric Jackson CEOs, Boards and Management: Welcome to Club Crony http://seekingalpha.com/article/161700-ceos-boards-and-management-welcome-to-club-crony?source=feed 161700 In response to my recent criticisms of Carol Bartz, her management team, and board at Yahoo! (YHOO), I've had some people ask me "How can you be against management? Don't you support business and capitalism?"

When did it become assumed that anyone pro-management was pro-capitalist and anyone pro-shareholder rights was pro-socialist?

]]> Wed, 16 Sep 2009 02:27:27 -0400 Eric Jackson In response to my recent criticisms of Carol Bartz, her management team, and board at Yahoo! (YHOO), I've had some people ask me "How can you be against management? Don't you support business and capitalism?"

When did it become assumed that anyone pro-management was pro-capitalist and anyone pro-shareholder rights was pro-socialist?


Complete Story »]]> Eric Jackson Microsoft, Alibaba.com Execs Join Yahoo in Noticeable Share Dumps http://seekingalpha.com/article/161495-microsoft-alibaba-com-execs-join-yahoo-in-noticeable-share-dumps?source=feed 161495 In recently criticizing Yahoo!'s (YHOO) insiders for dumping $233mm in stock over the last 2 years, when they've only bought $103k in shares, I would be remiss if I also didn't call out 2 other executives for big share dumps last week:

  1. Craig Mundie, head of research and strategy for Microsoft (MSFT). Craig decided to sell stock worth $1.7mm recently. Craig has resided over Microsoft's R&D efforts for the last few years. This group eats up nearly $10 billion annually of Microsoft's free cash flow. It is the group Microsoft looks for to compete in mobile computing or other areas, rather than buying a leading company such as, say, Research In Motion (RIMM). The R&D group has eaten up about $60 billion of Microsoft's cash in the last 10 years with not much to show for it. This latest share dump is very disappointing to me as a MSFT shareholder, especially given his group's performance.
  2. Jack Ma, head of Alibaba.com (ALBCF.PK). When news broke last week about how much Yahoo! stock had been sold by insiders in the last 2 years, perhaps Jack Ma got inspired. The head of Alibaba.com -- whose parent company is 40% owned by Yahoo! -- sold stock worth $35mm last week. That's a Terry Semel-sized disgorgement of shares. His explanation for the share sale was the most original I've ever read for a share dump: "There are many things that I need to learn how to do ... all of which I would like to do while I am still young and will need to do now.... I need to start learning now how to deploy money to do proper things, to experience the real meaning and responsibilities of having wealth." Good luck, Jack. It is a heavy burden you carry, but I know you will do it with a solemn and determined focus.

Disclosure: I hold a long MSFT position at the time of publication.

]]> Tue, 15 Sep 2009 04:43:19 -0400 Eric Jackson In recently criticizing Yahoo!'s (YHOO) insiders for dumping $233mm in stock over the last 2 years, when they've only bought $103k in shares, I would be remiss if I also didn't call out 2 other executives for big share dumps last week:

  1. Craig Mundie, head of research and strategy for Microsoft (MSFT). Craig decided to sell stock worth $1.7mm recently. Craig has resided over Microsoft's R&D efforts for the last few years. This group eats up nearly $10 billion annually of Microsoft's free cash flow. It is the group Microsoft looks for to compete in mobile computing or other areas, rather than buying a leading company such as, say, Research In Motion (RIMM). The R&D group has eaten up about $60 billion of Microsoft's cash in the last 10 years with not much to show for it. This latest share dump is very disappointing to me as a MSFT shareholder, especially given his group's performance.
  2. Jack Ma, head of Alibaba.com (ALBCF.PK). When news broke last week about how much Yahoo! stock had been sold by insiders in the last 2 years, perhaps Jack Ma got inspired. The head of Alibaba.com -- whose parent company is 40% owned by Yahoo! -- sold stock worth $35mm last week. That's a Terry Semel-sized disgorgement of shares. His explanation for the share sale was the most original I've ever read for a share dump: "There are many things that I need to learn how to do ... all of which I would like to do while I am still young and will need to do now.... I need to start learning now how to deploy money to do proper things, to experience the real meaning and responsibilities of having wealth." Good luck, Jack. It is a heavy burden you carry, but I know you will do it with a solemn and determined focus.

Disclosure: I hold a long MSFT position at the time of publication.


Complete Story »]]> ALBCF.PK MSFT Eric Jackson Why Did Yahoo's Carol Bartz Use Shareholders' Money to Pay Taxes? http://seekingalpha.com/article/161180-why-did-yahoo-s-carol-bartz-use-shareholders-money-to-pay-taxes?source=feed 161180 Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

Bobbie Johnson of the Guardian wrote a balanced post on the topic of Carol Bartz's $10mm Year One signing bonus.

]]> Sun, 13 Sep 2009 02:37:58 -0400 Eric Jackson Editor's note, 10/10/09: Yahoo's public relations firm sent an official dispute to Seeking Alpha regarding this and other recent articles by Eric Jackson on CEO Carol Bartz's sale of stock and compensation agreement, claiming the articles are 'inaccurate and misleading.' Read Yahoo's response here.

Bobbie Johnson of the Guardian wrote a balanced post on the topic of Carol Bartz's $10mm Year One signing bonus.


Complete Story »]]> YHOO Eric Jackson Five Conclusions on What Carol Bartz Had to Say About Selling Shares http://seekingalpha.com/article/161049-five-conclusions-on-what-carol-bartz-had-to-say-about-selling-shares?source=feed 161049

Carol Bartz, CEO of Yahoo! (YHOO), appeared on CNBC's Squawk Box Thursday morning talking about their search deal with Microsoft, that she would've taken the MSFT buyout offer at $33 or $34 ("you think I'm stupid?"), their investment in Alibaba (ALBCF.PK), and the analysis I did last week which showed she sold $2 million in stock between Feb. 1 and June 30th this year.
]]> Fri, 11 Sep 2009 07:41:28 -0400 Eric Jackson

Carol Bartz, CEO of Yahoo! (YHOO), appeared on CNBC's Squawk Box Thursday morning talking about their search deal with Microsoft, that she would've taken the MSFT buyout offer at $33 or $34 ("you think I'm stupid?"), their investment in Alibaba (ALBCF.PK), and the analysis I did last week which showed she sold $2 million in stock between Feb. 1 and June 30th this year.

Complete Story »]]> YHOO Eric Jackson Yahoo Insiders Should Be Shown the Door Out http://seekingalpha.com/article/160599-yahoo-insiders-should-be-shown-the-door-out?source=feed 160599 Does a leopard change its spots? Not at Yahoo! (YHOO); every director and officer there seems to have a congenital affliction that is forcing them to withdraw as much compensation as they can from the shareholders like a personal ATM.

The company's always had a laissez-faire approach to compensation. A techie friend from the Valley explained it to me this way: "Hey, it's tech. It's how we've always done it. We have a war for talent out here. Where would we be as a company if we didn't pay so much?"

]]> Wed, 09 Sep 2009 09:17:33 -0400 Eric Jackson Does a leopard change its spots? Not at Yahoo! (YHOO); every director and officer there seems to have a congenital affliction that is forcing them to withdraw as much compensation as they can from the shareholders like a personal ATM.

The company's always had a laissez-faire approach to compensation. A techie friend from the Valley explained it to me this way: "Hey, it's tech. It's how we've always done it. We have a war for talent out here. Where would we be as a company if we didn't pay so much?"


Complete Story »]]> YHOO Eric Jackson SEC's Long-Awaited Proxy Changes Make Much Sense Despite Protests http://seekingalpha.com/article/159712-sec-s-long-awaited-proxy-changes-make-much-sense-despite-protests?source=feed 159712 After the meltdown of firms like Lehman Brothers, Citigroup (C), Bank of America (BAC), Fannie Mae (FNM), Freddie Mac (FRE) and General Motors, and the knock-on effect this has had on our entire economy, it's fair to ask the question: Where were the boards of directors when all of this was going on? How could they let such poor decisions happen under their watch?

The Securities and Exchange Commission agrees, and after more than 30 years of debating the possibility of doing so, has proposed new amendments that will let shareholders nominate up to 25% of a public company's board (to be voted on by all shareholders).

]]> Thu, 03 Sep 2009 02:11:41 -0400 Eric Jackson After the meltdown of firms like Lehman Brothers, Citigroup (C), Bank of America (BAC), Fannie Mae (FNM), Freddie Mac (FRE) and General Motors, and the knock-on effect this has had on our entire economy, it's fair to ask the question: Where were the boards of directors when all of this was going on? How could they let such poor decisions happen under their watch?

The Securities and Exchange Commission agrees, and after more than 30 years of debating the possibility of doing so, has proposed new amendments that will let shareholders nominate up to 25% of a public company's board (to be voted on by all shareholders).


Complete Story »]]> Eric Jackson