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cstauffer

cstauffer
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  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    Tomas, that is a very narrow interpretation. I would argue that Senior Executives are hired to improve a company's competitive position in the short, intermediate and long-term, as well as improving return on invested capital. If they do those things, than over time the stock price should reflect the management team's efforts. By granting stock options with relatively short-term expiration dates, the Board provides an incentive for the managment team to focus on one short-term time frame after another. This short-term focus can be counter-productive to incenting management to make near-term decisions that might actually depress the stock, but position the company for better long-term success. These CEO's and senior managers are paid extremely well, why can't they actually invest their own hard earned money in the stock of the company that they manage and hope to retire from. If they did that, they would become long-term investors and their focus would shift to where it should be, long-term wealth creation.
    Jan 2 11:36 AM | Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    205427, in reality senior executives at many large companies get their salary raises, still get incentive cash bonuses, plus they get granted options. If the stock price rises then they can do a cashless excercise and pocket a the difference betweent he strike price and the market price without either the company or the executive having to pay for those options.
    Jan 2 08:37 AM | Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    Tomas, in regard to your question, I have never worked for a start-up company that I did not start. I have however worked for several large publicly traded companies and I was well aware of all of the perks that senior management had given to them such as restricted stock, stock options, deferred comp plans and savings plans where they were guaranteed a premium interest rate on cash baances. Beyond these perks the very senior people get other lifestyle perks for life such as country clubs, access to company planes, etc. It gets totally excessive.
    Jan 2 12:13 AM | Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    Dude, we have been discussing CEO's and executive management of large publicly traded companies, not start-ups. A start-up is an entirely different situation. If you are a great manager and choose to take a position at a start-up for far less in salary and benefits than you could get elsewhere in exchange for significant options that will pay off in the future if you can guide that company through its risky formative years, than yes you are taking risk. Your risk is that you gave up higher current compensation for a bigger payoff later. That is generally not the case in large companies. These exec's get very lucrative compensation, plus option "handouts" that are issued in such ways to be no-lose situations for the exec and the company. These companies are not purchasing options in the market, these are company issued options and then when they are exercised the company issues more stock. So this does not cost the company anything, it just costs existing shareholders in the form of dilution.
    Jan 2 12:07 AM | 1 Like Like |Link to Comment
  • House Republicans - including House Majority Leader Eric Cantor - are reportedly overwhelmingly opposed to the fiscal cliff deal approved by the Senate. The House appears poised to amend the deal and send it back to the Senate, setting up a legislative high-wire act. [View news story]
    Macro, if you are insinuating that the Fed expanding its balance sheet is inflationary, it is not. The inflation that the Fed creates by buying Treasuries is risk asset inflation (stock markets) because investors are induced to buy dividend paying stocks, REITs, etc. to get yield that they can no long get from bonds. This is the intended result from QE. Broad inflation is not directly effected because the monetary velocity is not increased.
    Jan 1 07:43 PM | Likes Like |Link to Comment
  • House Republicans - including House Majority Leader Eric Cantor - are reportedly overwhelmingly opposed to the fiscal cliff deal approved by the Senate. The House appears poised to amend the deal and send it back to the Senate, setting up a legislative high-wire act. [View news story]
    Third world country? The U.S. is in absolutely no danger of losing its number one position in the world has having the highest per capital wealth for any large advanced country. I don't think a third world country would lead the world in per capita wealth.
    Jan 1 06:49 PM | 1 Like Like |Link to Comment
  • House Republicans - including House Majority Leader Eric Cantor - are reportedly overwhelmingly opposed to the fiscal cliff deal approved by the Senate. The House appears poised to amend the deal and send it back to the Senate, setting up a legislative high-wire act. [View news story]
    Cantor was instrumental in Boehner's Plan B plan getting defeated.
    Jan 1 06:46 PM | 3 Likes Like |Link to Comment
  • House Republicans - including House Majority Leader Eric Cantor - are reportedly overwhelmingly opposed to the fiscal cliff deal approved by the Senate. The House appears poised to amend the deal and send it back to the Senate, setting up a legislative high-wire act. [View news story]
    TG, the bill of tax cuts increases the deficit compared to the baseline assumption that all of the tax cuts expire and the sequestered spending cuts go forward. This baseline was never going to happen. Instead they have broken the tax cut legislation apart from the spend cut legislation that will have to be taken up in two months. The $4 trillion number is meaningless.
    Jan 1 06:45 PM | 1 Like Like |Link to Comment
  • House Republicans - including House Majority Leader Eric Cantor - are reportedly overwhelmingly opposed to the fiscal cliff deal approved by the Senate. The House appears poised to amend the deal and send it back to the Senate, setting up a legislative high-wire act. [View news story]
    I hear the House Republicans who oppose the deal saying that they are the voice of the people, but if they are truly interested in the voice of all the people, they would bring the bill up for a vote for all the house so we can hear the voice of all the people.
    Jan 1 05:27 PM | 7 Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    Tomas, when one risks zero of their own personal capital or has not assigned away personal assets to guarantee an investment, they have not taken any personal risk. If something, such as stock options are given to an executive, it costs the company zero and it costs the executive zero. Then at some point in the future the executive can exercise those options, if they are in the money, in a cashless manner. Meaning that the executive does not have to actually exercise the option by buying the stock at the exercise prices. The executive can simply pocket the difference between the exercise price and the market price of the share without every investing a dime of his or her own capital. You make the distinction of risk by saying that because you have something that was given to you, that you incur risk of losing it. That is correct, but you can never go backwards like an entreprenaur who invests his own capital, mortgages his home or guarantees corporate debt. If the entreprenaur does not succeed, he or she can end up in a worse place than where he or she started. That is risk.
    Jan 1 02:08 PM | 2 Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    I choose to try to make a difference through my actions. I may not achieve my maximum wealth, but I feel very good about the choices that I make. Happy New Year!
    Jan 1 12:06 PM | 2 Likes Like |Link to Comment
  • U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
    Gotcha, I interpreted what you were saying wrongly.
    Jan 1 11:15 AM | Likes Like |Link to Comment
  • Agreement has been reached on all tax issues, says Senate Minority Leader McConnell, speaking on the Senate floor. Stocks move to session highs, the S&P 500 +1.5%[View news story]
    Welcome to a post financial crisis balance sheet recession recovery.
    Jan 1 11:07 AM | 1 Like Like |Link to Comment
  • The chances for a fiscal cliff deal in the next 48 hours are "exceedingly good," says Senator Lindsey Graham, appearing on Fox News. "Hats off to the President, he won," Graham adds. "The President campaigned on raising rates and he's going to get a rate increase." [View news story]
    Calades, please Google Richard Koo from Nomura. Richard Koo is a Japanese economist who coined the phrase "balance sheet recession" from his extensive research of the 20 + year Japanese stagnation/bear market. There are many papers written by Richard Koo that will explain the difference between a balance sheet recession and a typical business cycle induced recession that is was typically brought on by central banks raising interest rates.
    Jan 1 11:05 AM | Likes Like |Link to Comment
  • The chances for a fiscal cliff deal in the next 48 hours are "exceedingly good," says Senator Lindsey Graham, appearing on Fox News. "Hats off to the President, he won," Graham adds. "The President campaigned on raising rates and he's going to get a rate increase." [View news story]
    david, please stop using the word elite in a derrogatory manor. I know what you are trying to say, but when someone diminishes that societal contribution of our best and brightest, it makes that person sound ignorant. The "elite" that you are stereotyping in a negative manner are the very same elite that you should be very thankful for. Everytime that someone's life is saved through cutting edge medical treatments or when Roosevelt wanted to put an end to WWII, he turned to the elite to develop the A-bomb. Those nuclear power plants that you talked about earlier would not exist without the "elite".
    Jan 1 11:00 AM | 1 Like Like |Link to Comment
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