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

[Adrian Tymes]

Sorry for the late reply...

--- Mike Lorrey <mlorrey at yahoo.com> wrote:
> --- 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..

True.  But that assumes you don't have most or all
companies set up to discourage said policies by their
initial managers, there is no constantly regenerating
population of very shortsighted insurance companies
that don't bother mandating it (say, insurance
companies set up by the same managers), and so forth.

> > > 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.

It would seem that, at least in our current
government, most stockholders perceive that their
efforts are better spent on their own efforts than on
managing their various investments.  They see
government enforcement of good management practices as
a commons that few individuals would pay to maintain,
but which benefits all (or, at least, most).