greed is not good! presented by richard g. stone founder & president, stone & co. limited
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GREED IS NOT GOOD! Presented by Richard G. Stone Founder & President, Stone & Co. Limited. The point is, ladies and gentleman, is that greed -- for lack of a better word -- is good. Greed is right. Greed works. - PowerPoint PPT PresentationTRANSCRIPT
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
GREED IS NOT GOOD!Presented by Richard G. Stone
Founder & President,
Stone & Co. Limited
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
The point is, ladies and gentleman, is that greed -- for lack of a better word -- is good.
Greed is right.
Greed works.
Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.
Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind.
And greed -- you mark my words -- will not only save Teldar Paper, but that other malfunctioning corporation called the USA.
Michael Douglas as Gordon Gekko in Wall Street
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
In The News Over 15 Years Later …
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
What Went Wrong?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Executive compensation grossly disproportionate to corporate results
Stock promotion (IPOs) that has gone to an extreme in the creation of very questionable or unproven business concepts
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Misuse of corporate funds
Trading on insider information, particularly by managers exercising stock options that have rewarded short-term thinking
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Misrepresentation of the true earnings and
financial condition of too many companies
Obstruction of justice by concealing
activities or destroying evidence
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Who Were the Transgressors?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Passive, non-independent and rubber-stamping boards of directors
Non-accountable CEOs and senior management involved in serious conflicts of interest
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Transaction-driven investment bankers and market makers, and biased and non-independent analysts
Non-independent public accounting firms
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Regulators paying more attention to the
manifestations of the problem than to
the systemic conflicts of interest that
are at the core of poor governance
practices
*Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Shoot the messenger
Media always dodges bullet
Investor questions trustworthiness of Advisor
Advisor feels little control
Result:
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Canada is ahead of the U.S.
NI 81-102
FundSERV
Canadian Reality:
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Not a game of statistics
Simple due diligence
Educate your clients that there is a Due Diligence Process
Solution: Take control!
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
6 Questions to Ask to Ensure Good Corporate
Governance
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
What is your company’s policy on the responsibilities you have toward unitholders?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
What is your company’s policy on their role as representing unitholders with respect to the voting of shares, and other shareholder issues?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
Do you publicly disclose how your company has voted their shares in all holdings? If so, where do I find this information? If not, Why?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
What is your company’s viewpoint toward executive and management option plans?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
What initiatives is your company taking to deal with the shareholder issues we face?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
In general, please explain what you see as the issues facing your unitholders and shareholders today? Can you define your policies and attitudes toward these issues?
Greed is NOT Good!
CIFP Four Educational Streams: Wealth Management Tax Planning Estate Planning Risk Management
“…a man with a briefcase
can steal more money
than any man with a gun
…”
- Don Henley