the fleecing of the american shareholder · in july 2012 when the average share price was around...
TRANSCRIPT
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 14
SEP 27 2015 0832 AM 5454 VIEWS
The Fleecing Of TheAmericanShareholder
ldquoThou shalt not stealrdquo
ldquoThou shalt not stealrdquo is one ofthe Ten Commandments of the Torahwhich are widely understood as moralimperatives by legal scholars Jewishscholars Catholic scholars and Postshy
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 24
Reformation scholars
How does that small sentence fit inwith the title of this post Jayrdquo youask
Executive compensation is not a newissue but is one that definitely needs tobe addressed because as far as I amconcerned what corporatemanagement is doing is in completeviolation of the above commandmentMaybe itrsquos not legally consideredstealing but in every other form whatis happening in the upper ranks ofCorporate America is theft fromshareholders plain and simple
Most shareholders donrsquot evenunderstand that when topmanagement pay themselves tens orhundreds of millions of dollars it isbasically sanctioned theft of their ownmoney
Irsquoll go through a couple of exampleswith you and let you decide whether itis theft albeit currently legallyacceptable
Please let me point out that I have noissues with founders of companiesexercising their options at a penny pershare for example and selling themfor a zillion dollars per share Theyfounded the company they took itpublic and if they make a zilliondollars cashing in more power to
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 34
PAGE 1 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP RATED
TOP 10
BEST
them I do have a slight problem ifthey are cashing in when shareholdersare getting screwed due to horrificdeclines in the stock price I say only aslight problem because they arenrsquotforcing anyone to hold on to theirshares and if shareholders choose todo so while prices are in declines (andthe founders are bailing) the fault isnot the founders but the shareholders
SEP 27 2015 0832 AM 7369 VIEWS
The Fleecing Of TheAmericanShareholder
Continued from page 1
Letrsquos start off with HewlettPackard once one of the earlyearly pioneers of the tech industryin Silicon Valley and now left ashell by management ineptitudeand greed Current CEO MegWhitman has been the one at thehelm of this onceshygreat companysince September 22 2011 whichwas the day she was appointedCEO and the shares closed the day
Jay SomaneyCONTRIBUTOR
I help investors and tradersnavigate the stock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributorsare their own
FULL BIO
Investing
at $2280share Share pricetoday is $2501 So in four yearsafter ups and downs the shareshave gained a whopping 97 intotal or less than 2 per annumcompounded Whitman made$154 million in fiscal 2012(ending October 2012) $176million in fiscal 2013 and $196million in fiscal 2014 HewlettPackardrsquos year end is in Octoberso wersquoll find out what she willmake for fiscal 2015 when theyfile their 10k for fiscal 2015 butletrsquos assume that it will be $20million So in the four years sinceWhitman has been CEO she willhave made about $73 million Asof June 30 2015 Dodge amp Cox isthe largest institutionalshareholder of HPQ with about246 million shares worth about$738 billion In these four yearsunder Whitman shareholders ofDodge ampCox mutual funds made$544 million Does it make sensethat Whitman made $73 millionwhile shareholders have earnedless than a 2 return pa on theirinvestment over that sameperiod Of course MegWhitmanrsquos salary is $1 per year(wink wink)
Letrsquos move on to another evenmore egregious example ofcompany management robbingthe shareholder blind Marisa
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 24
Reformation scholars
How does that small sentence fit inwith the title of this post Jayrdquo youask
Executive compensation is not a newissue but is one that definitely needs tobe addressed because as far as I amconcerned what corporatemanagement is doing is in completeviolation of the above commandmentMaybe itrsquos not legally consideredstealing but in every other form whatis happening in the upper ranks ofCorporate America is theft fromshareholders plain and simple
Most shareholders donrsquot evenunderstand that when topmanagement pay themselves tens orhundreds of millions of dollars it isbasically sanctioned theft of their ownmoney
Irsquoll go through a couple of exampleswith you and let you decide whether itis theft albeit currently legallyacceptable
Please let me point out that I have noissues with founders of companiesexercising their options at a penny pershare for example and selling themfor a zillion dollars per share Theyfounded the company they took itpublic and if they make a zilliondollars cashing in more power to
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 34
PAGE 1 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP RATED
TOP 10
BEST
them I do have a slight problem ifthey are cashing in when shareholdersare getting screwed due to horrificdeclines in the stock price I say only aslight problem because they arenrsquotforcing anyone to hold on to theirshares and if shareholders choose todo so while prices are in declines (andthe founders are bailing) the fault isnot the founders but the shareholders
SEP 27 2015 0832 AM 7369 VIEWS
The Fleecing Of TheAmericanShareholder
Continued from page 1
Letrsquos start off with HewlettPackard once one of the earlyearly pioneers of the tech industryin Silicon Valley and now left ashell by management ineptitudeand greed Current CEO MegWhitman has been the one at thehelm of this onceshygreat companysince September 22 2011 whichwas the day she was appointedCEO and the shares closed the day
Jay SomaneyCONTRIBUTOR
I help investors and tradersnavigate the stock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributorsare their own
FULL BIO
Investing
at $2280share Share pricetoday is $2501 So in four yearsafter ups and downs the shareshave gained a whopping 97 intotal or less than 2 per annumcompounded Whitman made$154 million in fiscal 2012(ending October 2012) $176million in fiscal 2013 and $196million in fiscal 2014 HewlettPackardrsquos year end is in Octoberso wersquoll find out what she willmake for fiscal 2015 when theyfile their 10k for fiscal 2015 butletrsquos assume that it will be $20million So in the four years sinceWhitman has been CEO she willhave made about $73 million Asof June 30 2015 Dodge amp Cox isthe largest institutionalshareholder of HPQ with about246 million shares worth about$738 billion In these four yearsunder Whitman shareholders ofDodge ampCox mutual funds made$544 million Does it make sensethat Whitman made $73 millionwhile shareholders have earnedless than a 2 return pa on theirinvestment over that sameperiod Of course MegWhitmanrsquos salary is $1 per year(wink wink)
Letrsquos move on to another evenmore egregious example ofcompany management robbingthe shareholder blind Marisa
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
9282015 The Fleecing Of The American Shareholder shy Forbes
httpwwwforbescomsitesjaysomaney20150927theshyfleecingshyofshytheshyamericanshyshareholder 34
PAGE 1 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP RATED
TOP 10
BEST
them I do have a slight problem ifthey are cashing in when shareholdersare getting screwed due to horrificdeclines in the stock price I say only aslight problem because they arenrsquotforcing anyone to hold on to theirshares and if shareholders choose todo so while prices are in declines (andthe founders are bailing) the fault isnot the founders but the shareholders
SEP 27 2015 0832 AM 7369 VIEWS
The Fleecing Of TheAmericanShareholder
Continued from page 1
Letrsquos start off with HewlettPackard once one of the earlyearly pioneers of the tech industryin Silicon Valley and now left ashell by management ineptitudeand greed Current CEO MegWhitman has been the one at thehelm of this onceshygreat companysince September 22 2011 whichwas the day she was appointedCEO and the shares closed the day
Jay SomaneyCONTRIBUTOR
I help investors and tradersnavigate the stock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributorsare their own
FULL BIO
Investing
at $2280share Share pricetoday is $2501 So in four yearsafter ups and downs the shareshave gained a whopping 97 intotal or less than 2 per annumcompounded Whitman made$154 million in fiscal 2012(ending October 2012) $176million in fiscal 2013 and $196million in fiscal 2014 HewlettPackardrsquos year end is in Octoberso wersquoll find out what she willmake for fiscal 2015 when theyfile their 10k for fiscal 2015 butletrsquos assume that it will be $20million So in the four years sinceWhitman has been CEO she willhave made about $73 million Asof June 30 2015 Dodge amp Cox isthe largest institutionalshareholder of HPQ with about246 million shares worth about$738 billion In these four yearsunder Whitman shareholders ofDodge ampCox mutual funds made$544 million Does it make sensethat Whitman made $73 millionwhile shareholders have earnedless than a 2 return pa on theirinvestment over that sameperiod Of course MegWhitmanrsquos salary is $1 per year(wink wink)
Letrsquos move on to another evenmore egregious example ofcompany management robbingthe shareholder blind Marisa
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
SEP 27 2015 0832 AM 7369 VIEWS
The Fleecing Of TheAmericanShareholder
Continued from page 1
Letrsquos start off with HewlettPackard once one of the earlyearly pioneers of the tech industryin Silicon Valley and now left ashell by management ineptitudeand greed Current CEO MegWhitman has been the one at thehelm of this onceshygreat companysince September 22 2011 whichwas the day she was appointedCEO and the shares closed the day
Jay SomaneyCONTRIBUTOR
I help investors and tradersnavigate the stock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributorsare their own
FULL BIO
Investing
at $2280share Share pricetoday is $2501 So in four yearsafter ups and downs the shareshave gained a whopping 97 intotal or less than 2 per annumcompounded Whitman made$154 million in fiscal 2012(ending October 2012) $176million in fiscal 2013 and $196million in fiscal 2014 HewlettPackardrsquos year end is in Octoberso wersquoll find out what she willmake for fiscal 2015 when theyfile their 10k for fiscal 2015 butletrsquos assume that it will be $20million So in the four years sinceWhitman has been CEO she willhave made about $73 million Asof June 30 2015 Dodge amp Cox isthe largest institutionalshareholder of HPQ with about246 million shares worth about$738 billion In these four yearsunder Whitman shareholders ofDodge ampCox mutual funds made$544 million Does it make sensethat Whitman made $73 millionwhile shareholders have earnedless than a 2 return pa on theirinvestment over that sameperiod Of course MegWhitmanrsquos salary is $1 per year(wink wink)
Letrsquos move on to another evenmore egregious example ofcompany management robbingthe shareholder blind Marisa
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
at $2280share Share pricetoday is $2501 So in four yearsafter ups and downs the shareshave gained a whopping 97 intotal or less than 2 per annumcompounded Whitman made$154 million in fiscal 2012(ending October 2012) $176million in fiscal 2013 and $196million in fiscal 2014 HewlettPackardrsquos year end is in Octoberso wersquoll find out what she willmake for fiscal 2015 when theyfile their 10k for fiscal 2015 butletrsquos assume that it will be $20million So in the four years sinceWhitman has been CEO she willhave made about $73 million Asof June 30 2015 Dodge amp Cox isthe largest institutionalshareholder of HPQ with about246 million shares worth about$738 billion In these four yearsunder Whitman shareholders ofDodge ampCox mutual funds made$544 million Does it make sensethat Whitman made $73 millionwhile shareholders have earnedless than a 2 return pa on theirinvestment over that sameperiod Of course MegWhitmanrsquos salary is $1 per year(wink wink)
Letrsquos move on to another evenmore egregious example ofcompany management robbingthe shareholder blind Marisa
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
Mayer took over Yahoo in July 2012 when the averageshare price was around $16 pershare Share price today is $29So one would think ldquowow Mayeris a geniusrdquo Nothing could befurther from the truth Yahoorsquosshares have risen and fallen fromthe time she took over to todayonly due to its stake in Alibaba Around the time she took over iswhen the buzz began about apotential listing of Alibaba inwhich Jerry Yang (Yahoo coshyfounder and former CEO) hadinvested $1 billion in exchange fora 30 stake back in 2005 As thebuzz grew stronger Yahoo sharescontinued to climb and basicallypeaked after Alibaba finally listedand peaked itself Now withAlibaba at close to its allshytimelows Yahoo shares are also downabout 47 from its 52 week highsSo in essence Mayer did nothingherself to create value forshareholders of Yahoo Howeverfor all her ldquoefforts and troublesrdquoshe has already been paid $37million for her half year of ldquoworkrdquoin 2012 $26 million in 2013 and$42 million in 2014 and her totalcompensation could top $250million if she continues to be theCEO through 2016 Being at theright place at the right thing isawesome but awesome to the tuneof $250 million in shareholder
YHOO +000
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
money is beyond awesome Itrsquoslegalized theft IncidentallyMayer is selling her stock handover fist as her options vest Yes Iknow She is diversifying (winkwink part deux)
Larry Ellison at Oracle Reed Hastings at Netflix Brin and Page at Google
et al are other CEOswho are selling their companyshares big time but they are alsothe founders and as far as I amconcerned founders get a passthat hired managers do not andshould not Ever Period
However I do have a problemwith Carly Florina making ahundred million dollars as CEO ofHewlett Packard or MarissaMayer making 25x that at Yahooor a Tim Cook making a billiondollars (by the time its all said anddone) at Apple
If you could get any of these CEOsto ever admit it each andeveryone of them will tell you thatthey did not really deserve even10 of what they got paid at theirCEO stints
The reasons why this legalizedand sanctioned theft is happeningare also simple
ORCL +000
NFLX +190
GOOGL +062
AAPL +000
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
The Board and the CompensationCommittees agree to theseborderingshyonshystealing CEOcontracts because itrsquos not theirmoney that they are throwingaround Itrsquos shareholder moneyand the Board itself is very wellcompensated so itrsquos a game tothem as well If the hired CEOcomes in and does hisher jobtheir own stockoptionsgrantsawards will alsoincrease in value If the CEO doesnot perform they have very littleof their own money (moneytheyrsquove earned at their jobs andinvested in company shares) inthe stock so they can shrug andblame it on the CEO
Above I talked about theinstitutional shareholders whoagain are investing withshareholder (that is the moneyyou and I earn and choose to putinto a mutual fund) funds sothey donrsquot care that much eitherHow many mutual fundmanagers have a majority of theirown net worth tied up in themutual fund they manage Iwould say virtually zero
Recommended by Forbes
Photos 10 StepsTo Take WhenYou Win ALottery Jackpot
MOST POPULAR Meet TheAfricanshyAmericanBillionaireBusinessmanWhos RicherThan Michael
TRENDING ON
State FarmVoice3 RetirementSavings TipsEvery MillennialShould Know
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
Most of these CEOrsquos have done adecent job a long time ago andare riding that reputation to milknew shareholders dry Take forexample Meg Whitman She didhelp eBay rise from acompany with a million in salesto $8 billion in sales Howeverwas it the advent emergence andthen dominance of the internetthat was responsible or did shepersonally help eBay grow Thatis would eBay have folded if shewere not there to help it grow Ihardly think so Someone likeCarly Florina is an even moreglaring example of just areputation robbing shareholdersThink about it What has reallybeen her track record of successShe worked her way up the ranksof ATampT Lucent and thentook over as CEO of HewlettPackard from 1999 to 2005 Forthat she got paid a couple ofhundred million dollars ofshareholder money
Look if it doesnrsquot bother you thatthese soshycalled top CEOs arerobbing you and I blind then sobe it but if it does bother you onlyyou can do something about itThe CEOs themselves theinstitutional shareholders theBoards are all playing with yourmoney and mine and as long asyou and I are quiet nothing willchange
EBAY +000
T +000
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
PAGE 2 3 Continue
Reprints amp Permissions Report Corrections
Comment on this story
SEE ALSOHIGHEST
DIVIDEND
STOCK
PENNY
PENNY
TOP
TOP 10
BEST
For the CEOs its a winshywin If theshares do well while they are CEOthey get paid hundreds of millionsof dollars if not they will get paidtens of millions They participatevery big in the upside but verylittle or not at all in the downsideIf you owned Yahoo in the lastcouple of years or HPQ in the lastfour you will know what I meanThe downside is all on theshareholders
I have chosen to bring this issue tothe forefront via this post
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-
Reprints amp Permissions
PAGE 3 3
SEP 27 2015 0832 AM 7369 VIEWS
Report Corrections
Comment on this story
The Fleecing Of TheAmericanShareholder
Continued from page 2
The ball is now in your court
Whether you agree or not voice youropinions below
(please note I am long apple netflixyahoo google long and short optionson all except yahoo)
Jay SomaneyCONTRIBUTOR
I help investors and traders navigate thestock market
FOLLOW ON FORBES (20)
Opinions expressed by Forbes Contributors aretheir own
FULL BIO
Investing
- The Fleecing Of The American Shareholder - Forbes
- The Fleecing Of The American Shareholder - Forbes2
- The Fleecing Of The American Shareholder - Forbes3
-