Syl

Tuesday Market Preview: Down Further?

How can one justify a healthy bonus when he/she is the CEO of that failing company? Why has our inefficient government not put an early lid on bonuses before a bailout was approved? Another proposition that intrigues me is why do the majority of stock holders approve extravagant salaries, for failing companies, every time proxy time rolls around. The Board of Directors alway request a yes vote. Their argument is they don't want to lose their top people. By the way the
Board always wins the salary, bonus, and stock options they requested for the CEO's. I voted no on a request for a 12-B option for a mutual fund. I got a long distance call from some person in the upper echelons who asked why I voted no. I said that 12-B provision would not benefit me one cent. They held another vote and it was approved. I dropped the investment and I have had no reason to regret my vote.