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1/09/2012

The new corporate raiders

Soros and his company were once the typical corporate raiders the commercial world was used to. They have been superceded by a new brand of corporate raiders that are running and ruining many corporations to bankruptcies. The new corporate raiders are the senior management of corporations, hired to run the corporations but ended up raiding the corporations.

The lack of accountability and the dilution of ownership of the majority small shareholders who could not cast their votes together to prevent the corporations from be robbed from beneath their noses is happening to all big organisations that are public listed. The new owners are actually the senior management working hand in glove with the board of directors.

With full power and authority in their hands, the two groups pay themselves crazy with all kinds of justifications, through share options, bonuses, golden handshakes, severance pay, and perks. Can’t imagine anyone could contribute so much to earn $100k a month, while some of these turkeys conveniently helped themselves with a million or more a month. Would these turkeys be able to tell how productive they are to earn their keeps? Imagine paying one $10m a year which will add up to $100m in 10 years!

Oh, they made decisions that are worth billions. True. But the billions are not only OPM, they could lose billions and not having to pay a single cent for it and still collect their ransoms. It is a disproportionate reward system where the turkeys keep filling up their pockets with the funds of the organisation no matter if the organisation is making or losing money. They could even cook the numbers to feast themselves. And they pay themselves over the moon when there is a little profit, genuine or fictitious. And when they lose millions or billions, they will argue that the organisation could lose more if not of their expertise and contributions. It is a head they win and tail you lose formula. The security guards of Fort Knox should be paid millions too.

The real owners of the organisations have been robbed daily, under bright daylight by these corporate raiders all across the world, using the western model of operation and system. Never have employees been allowed to dip into the coffers of organisations at will, and help themselves to as much as they want.

So British PM David Cameron is trying to curb these abuses, to return control of organisations back to their rightful owners, the minority shareholders. The same formula can be applied to running countries when rogues took over the govt. The citizens, the real owners of the countries would lose all control of their countries to the minority of rulers who just help themselves to the wealth of the nations as if it belongs to them.

Would David Cameron be successful and right this corporate corruption and change the ethos of corporate governance and the reward system?

9 comments:

Divali said...

[SEC to demand admission of wrongdoing in some cases]
U.S. securities regulators will no longer let companies settle civil cases without admitting or denying the charges if they have already admitted wrongdoing in parallel criminal cases.


http://www.reuters.com/article/2012/01/06/us-sec-policychange-idUSTRE8051VB20120106

Chua Chin Leng aka redbean said...

David Cameron: 'We have got to deal with the merry go round where there are too many cases of remuneration committee members sitting on each other's boards, patting each other's backs, and handing out each other's pay rises.'

This is more like an elitist scam.

Matilah_Singapura said...

Corporate raiders are great. They kill useless companies and reallocate resources to more efficient uses.

In nature, non-performance needs to be rubbed out, re-engineered and re-structured. CREATIVE DESTRUCTION.

And yes. The people who do this important work need to get paid.

No capitalism means no life. Ok?

Chua Chin Leng aka redbean said...

The old type, break up and restructure companies in trouble, and turn them around.

The new type, big gambler, they called investment. Win big, pay themselves damn big. Lose big, still pay themselves damn big, just a little lesser.

Matilah_Singapura said...

Governments and egotistical prime ministers should stay out of the private sector. The private sector has it's own bozos, cowboys, saints, demons and geniuses. The private sector is DIVERSE compared to the lumbering, uncompetitive, mono-cultural, boring and often corrupt government.

So David Cameron, and the rest, shut the fuck up... unless you have the balls to play in the private sector

Matilah_Singapura said...

The same kind of mammalian primate brains runs the private sector as the one you and I have. ie we all do what we need to do as FREE individuals to get whatever we need to compete or get things done.

The private sector is the private sector. You want to play? Then play. No balls or capital to play? Balek kampung and hisap mama tetek lah

Chua Chin Leng aka redbean said...

Not really. Everything is turned upside down. The MBAs today are Masters of Big Assholes.

Anonymous said...

What's cooking with David Cameron, whatever he is spewing seems very contrarian... the skeptic in me smells a rat

Anonymous said...

Is that a satire on Temasek Holdings?