[extropy-chat] Bush wants another $75 billion for wars

[Mike Lorrey]

--- Adrian Tymes <wingcat at pacbell.net> wrote:

> --- Mike Lorrey <mlorrey at yahoo.com> wrote:
> > --- Adrian Tymes <wingcat at pacbell.net> wrote:
> > > Okay...so how do you prevent managers from cashing
> > > out the company between reports and leaving
> > > shareholders with an empty bag?  
> > 
> > If the managers obtain their stock via employee
> > purchase or options
> > programs, they would be required to only buy or sell
> > stock in the month
> > or two AFTER the annual or bi-annual report is
> > released.
> 
> Which requires government regulation to enforce.

Not necessarily. Stockholders could simply vote to mandate it as
company policy, insurance providers could mandate it, etc..

> 
> > Anyone who
> > purchases stock on the open market could buy and
> > sell whenever they
> > want.
> 
> What of managers who more literally "cash out" the
> company by rigging their compensation, then resigning
> just before the report to the board is due, but never
> own (or don't care about) shares in the company?

Managers compensation is approved by the company board of directors. If
management is rigging the board, then the stockholders are asleep at
the wheel.

=====
Mike Lorrey
Vice-Chair, 2nd District, Libertarian Party of NH
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                      -William Pitt (1759-1806) 
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


		
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