While transparency is a stated goal of many corporations, deliberations regarding distribution of shareholder property
to executives are not subject to light of day or to review. Instead, decision-making is camouflaged by
thousands of words that appear substantial but disclose little.
An exaggerated share of the nation’s wealth is paid to CEOs of public companies, their minions and directors, through agreements
made inside boardrooms, by highly compensated individuals who commit shareholders’ money and are not subject to effective
“What should I teach my 5-year-old about finance?” a client asked. I responded: “Teach him that finance is fun.” Investment finance is neither complicated nor intimidating and, like a foreign language, the earlier the learning, the better the result. Thanks to a smart and active parent, I learned early, over the dinner table, or in the car. For example, my mother took me for a drive on the new highway near our home, and said: “When this building program started,…
Corporate transactions, such as the sales of Peoples Bank and First Indiana Bank, as well as mergers of utility companies, benefit no one. For example: Retail customers: No evidence exists that consumers benefit from these transactions. Companies might argue that fees and prices rise more slowly in larger organizations, a result of efficiencies, but no proof is available, and the principle of diminishing returns suggests that, at some point, the cost of running a large entity becomes proportionately greater than…