The Shareholders Myth!

Jun 13 2009
By: Doron York
Categories: Leadership Talk
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For the past decade, we have witnessed corporate America going downhill and with it all of our precious principles that this great country was founded on. Is it the sense of entitlements or pure arrogance? (I will leave it to you to answer that).

About a week ago I have watched a brief interview between a TV reporter and a former exec in one of the crumbling financial institution powerhouses. The question that was asked was “what do you have to say to the people that lost their money or their homes?” the exec reply; “Look, it is just business. It is not personal. We could not predict that it would turn out this way” – GIVE ME A BREAK! Do not insult my intelligence, please. The writing was on the walls for at least 1-2 years, even I could see it. My research leads me to find out that this exec made $126M in the past 8 years. One Hundred and Twenty Six Million Dollar! (Just for the records). How much did you make?

I correct myself, we did not lose our principles, and we have lost our minds! There is a very distinct and obvious difference between Capitalism and Narcissism!

Look, I am capitalist and I enjoy very much the ability to have free choices about my life and to have the ability to afford and even indulge myself with the goodness of life, why not. I work for it, yes WORK for it.

But here is the question, how much it enough? There is pure greed and there is capitalism. There are CEO like those how run Tyco, World Comm., Enron, Lehman Brothers and Bear Stern who are pure Narcissists, and there are people like Bill Gates, Ted Turner and T. Boone Pickens and Warren Buffett – Mr. Buffett still lives in the same home he bought in Omaha, Neb., in 1958 for $31,500. He drives a Cadillac, prefers burgers and Cherry Cokes to a pricey steak. When a waiter once tried to pour him some rare, vintage wine, Buffett covered his glass and said, “No thanks, I’ll take the cash.” True Capitalists.

And who the government (your government) of the people and for the people bailed out, with your money? It is the definition of insanity. Penalize the innocent and reward the guilty… we say, Dose this make you proud?

Here is my two cents; “What is in the best interest of the shareholders (short term) is not always what is in the best interest of the company. But if you always do what is in the best interest of the company it will always benefit the shareholders (long term)” What a paradox.

We ether stand for free market and free enterprise or we do not. If we are, let the market work itself out. What dose the government have to do with it? Let those who made the mistakes (crimes more accurately) pay the price.

Give the money to the people not to the criminals! We keep making the same mistake over and over again and expect different results.

Is it madness or insanity? You decide.

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