Thank you for clarifying my understanding. I had mistakenly assumed that executives would have a large number of shares from which to be compensated, but that's not always the case. Bill Fairchild ----- Original Message -----
From: "Anne & Lynn Wheeler" <[email protected]> To: [email protected] Sent: Friday, January 24, 2014 12:38:18 PM Subject: Re: IBM sells x86 server business to Lenovo (was Levono) [email protected] (DASDBILL2) writes: > IBM's core business is making profits for their stockholders. All else is > details of implementation. IBM's core business is maximizing executive compensation ... which translates into whatever the executive compensation plan calls for. reference to corporate governance doesn't ever mention maximizing shareholder value (... but tends to be a rallying cry behind which maximizing executive compensation occurs) http://www.nakedcapitalism.com/2013/10/why-the-maximizing-shareholder-value-theory-of-corporate-governance-is-bogus.html from above: If you review any of the numerous guides prepared for directors of corporations prepared by law firms and other experts, you won't find a stipulation for them to maximize shareholder value on the list of things they are supposed to do. It's not a legal requirement. And there is a good reason for that. Directors and officers, broadly speaking, have a duty of care and duty of loyalty to the corporation. From that flow more specific obligations under Federal and state law. But notice: those responsibilities are to the corporation, not to shareholders in particular. ... snip ... a couple past posts referencing above http://www.garlic.com/~lynn/2013m.html#84 3Q earnings are becoming the norm at IBM. What is IBM management overlooking? http://www.garlic.com/~lynn/2013n.html#1 IBM board OK repurchase of another $15B of stock http://www.garlic.com/~lynn/2013o.html#15 IBM Shrinks - Analysts Hate It analysis of IBM's most recent numbers http://www.zerohedge.com/news/2014-01-21/ibm-asian-revenues-crash-adjusted-earnings-beat-tax-rate-fudge-debt-rises-20-fund-st recent posts referencing above http://www.garlic.com/~lynn/2014b.html#16 IBM to invest 1.2B into Cloud Data Centers http://www.garlic.com/~lynn/2014b.html#25 IBM Asian Revenues Crash, Adjusted Earnings Beat On Tax Rate Fudge; Debt Rises 20% To Fund Stock Buybacks past posts mentioning selling x86 server business to lenovo (most from last spring) http://www.garlic.com/~lynn/2013f.html#28 Reports: IBM may sell x86 server business to Lenovo http://www.garlic.com/~lynn/2013f.html#35 Reports: IBM may sell x86 server business to Lenovo http://www.garlic.com/~lynn/2013f.html#38 Reports: IBM may sell x86 server business to Lenovo http://www.garlic.com/~lynn/2013f.html#45 Reports: IBM may sell x86 server business to Lenovo http://www.garlic.com/~lynn/2013f.html#51 Reports: IBM may sell x86 server business to Lenovo http://www.garlic.com/~lynn/2014b.html#27 IBM sells x86 server business to Levono -- virtualization experience starting Jan1968, online at home since Mar1970 ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN
