Banks & airlines - will be in the bread line

RaceBannon

Greed is going to win regardless but in the unintended consequence category was the populist move to "limit" CEO salaries in the 90's.

So they shifted compensation to stock options thus joining the mythical shareholders in demanding quarterly profit over long term health..

It is now a perfect storm of doing everything for the daily stock price and nothing for the health of the company, which can be broken up and sold off anyway

UW_Doog_Bot

This is what happens when the government gets in the business of bailouts to begin with. Companies will then take on risk with the mitigation plan of "we'll lobby for a bailout" and the race to the bottom of the margin is in in a competitive marketplace. Stop rewarding losers and losers will stop playing the game.

PurpleThrobber

creepycoug said:

Fucking bailouts. Again.

We need to start hiring analysts on Wall Street who factor in their analysis of "buy, hold, sell" recommendations SOME FUCKING IDEA about their fiscal house being in order. That should include a rainy day fund.

I get it. Retained earnings should be used for growth or for distribution to shareholders. I've been listening to the calls and editing the press releases for 25 years.

I'm not one for more regulation generally, but there should be a new SEC disclosure requirement to join the pile of information that the SEC already requires that lets shareholders know how long their company can run in the event of a severe economic downturn.

Companies should be evaluated the same way we evaluate people. Risk Factors in the 10-K ought to include something like:

"In the event of a severe economic downturn and significant loss of revenues, our cost structure is such that we would have to get on our knees and give the federal government a blow job so we could collect tax revenue to keep us afloat. Otherwise, we'd fail."

The fuck. Manage your costs to contemplate shit like this happening periodically. It goes entirely against the rules of monopoly that we just reach into the box and give you cash because you landed on Park Place with three hotels and just don't have any money .... because you've had a bad game and we want you to keep playing.

Boeing still dealing with their software issues on the grounded fleet. That's a big boy bidness. Better figure that shit out. Should have been resolved by now, and now this, the double whammy. A gloriously successful American company on its knees. CEO should be shit canned for cause ... no executive severance.

My SEC brother - you and I both know those fucks focus on minutia and let the big shit slide.

There are shitloads of risk factors in every filing -and those are mostly CYA as a means of legal swindling from dumbfucks who invest greedily and lose everything - but your blow job disclosure is pure securities language brilliance. The next S-1 I participate in, I'm gonna sneak that shit in there and see if anybody reads it. And then cross my fingers the company goes down because that would AWESOME to watch some of these egotistical CEOs have to suck cock on some old man who lost everything.

I'd also cap the fuck out of executive pay relative to median wages at a company. Put in some upside trigger events so they can still make a fuckbutt of money - but somewhere along the line, the whole concept of a 'good' corporate citizen has been misplaced by quarterly earnings targets and share price. The great Adam Smith stipulated people behave in their own self-interest. Look no further than the C-level on how that plays out.

Christ, I'm becoming a socialist. I better not start having wet dreams about Elizabeth Warren....

PurpleThrobber

RaceBannon said:

Greed is going to win regardless but in the unintended consequence category was the populist move to "limit" CEO salaries in the 90's.

So they shifted compensation to stock options thus joining the mythical shareholders in demanding quarterly profit over long term health..

It is now a perfect storm of doing everything for the daily stock price and nothing for the health of the company, which can be broken up and sold off anyway

See above. If they can't stop masturbating themselves, the big bad regulators will step in and chop off their collective C-level weenies.

LebamDawg

Hear is how corporate America (and I am sure elsewhere around the globe) makes decisions

In the beginning was the Plan.

And then came the Assumptions.

And the Assumptions were without form.

And darkness was upon the face of the Workers.

And they spoke among themselves, saying, "It is a crock of shit, and it stinketh."

And the workers went unto their Supervisors and said, "It is a pail of dung, and none may abide the odour thereof."

And the Supervisors went unto their Managers, saying, "It is a container of excrement, and it is very strong, such that none may abide by it."

And the Managers went unto their Directors, saying, "It is a vessel of fertiliser, and none may abide its strength."

And the Directors spoke amongst themselves, saying one to another, "It contains that which aids plant growth, and it is very strong."

And the Directors then went onto the Vice Presidents, saying unto them, "It promotes growth and is very powerful."

And the Vice Presidents went unto the President, saying unto him, "This new plan will actively promote the growth and vigour of the company; with powerful effects."

And the President looked upon the Plan, and saw that it was good.

And the Plan became Policy.

This is How Shit Happens.

creepycoug

HoustonHusky said:

Boeing spent $100 billion buying back stock and went cheap on designing/building a new plane instead of spending the $40 billion it should have costed. We need the company, but fuck the stockholders that took the outsized returns for years and the execs that made those decisions.

I gotta get this out ... I fucking hate stock buy backs. It's not real. If you and I had a business, and you wanted to sell me your share at what I thought was a discount, then I'd have some sense of it. Sure, the business could change, but I would always have a good sense of the economic value I received when buying you out for cheap.

Buybacks in the public company context is different. Again, I understand the economic justification. You're buying yourself at a discount. But that value can be wiped out by the market, for completely unrelated reasons, in a moment's time. A vapor.

If you distribute that $$ to me in the form of dividends, it's mine. I can use it however I wish. I don't know. I know the kids at Wharton would tell me it's the same - value delivery to shareholders - but if I had a choice, I would always take the cash in the form of dividends, and drop the stock buyback shit. I've never been a fan generally.

creepycoug

Trump just referenced Boeing as arguably the greatest company in the world - pre-grounding that is.

Said "we're going to help Boeing."

Again, not sure there's a choice here, but there's also something to be said for corporate Darwinism. We have a system and a philosophy, but with huge, huge exceptions.

Again, Boeing's CEO's head should have rolled a long time ago. I'm sure they would scream "But but the FAA!". Well, sure.gif. But you put yourself in this situation.

GrundleStiltzkin

PurpleThrobber said:

RaceBannon said:

Greed is going to win regardless but in the unintended consequence category was the populist move to "limit" CEO salaries in the 90's.

So they shifted compensation to stock options thus joining the mythical shareholders in demanding quarterly profit over long term health..

It is now a perfect storm of doing everything for the daily stock price and nothing for the health of the company, which can be broken up and sold off anyway

See above. If they can't stop masturbating themselves, the big bad regulators will step in and chop off their collective C-level weenies.

I'll tip the cap to Alaska Air, announced yesterday their top 2 C's are taking no salary. Maybe there's some goodies hidden somewhere, but the PR move is good.

WilburHooksHands

The airlines want $58B after they just spent $45B on stock buybacks instead of preparing for this again.

Kaepsknee

Fuck the airlines, Fuck the Banks and Fuck the Casino's and Fuck the authorities on this whole fake crisis. Bars and restaurant owners should all get together and say fuck you and open their doors. They can't and won't fine them all. And I'm sorry, If you have an existing condition or are old as fuck or abundance. THEN YOU STAY THE FUCK HOME and we'll bring you groceries.