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 They have been superceded by a new brand of corporate raiders that are running and ruining many corporations to bankruptcies.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?
1/09/2012
1/08/2012
Obama fighting for more money
He told the Americans that this is a tough battle. He needs money, and more money. And he has to fight Congress for it. No, he is not fighting for his own pay. If he does, I would recommend him the Singapore formula and the Singapore system. Just tell Congress that there is this wonderful model that works, and it pays the head of govt a basic of $3m with 27.5 months of variable bonuses as backup in case he performs well in his job.
He can then submit it to Congress to do all the cuts Congress wants. A 50% or 70% cut will still find him richer than the miserable $600k he is getting now. Unfortunately the American Congress is not so easy to deal with. There are opposition camps, there are also many checks and balances, above which, no one is allowed to write his own pay check or approve them.
My apologies, I digressed. Obama is fighting for more money for the American soldiers to conduct wars everywhere. As an American President, the top responsibility and the most important job is to conduct wars to feed the war industry and the soldiers. Nothing is more important than this. Not even fighting for his own pay rise. Anyway, his pay will only be decided by Congress and even if he admired the Singapore system and wanted it, he would not be able to do so.
It is a different culture. Asian culture is such that everyone is presumed to be corrupt. To be corrupt is in their blood. The only way to protect a guy from being corrupt is to legalise his payouts at whatever amount he thinks it will be needed to prevent him from being corrupt.
Can’t imagine Obama or any American President go in front of Congress or the American people and demand to be paid in millions to keep him from being corrupt. The Americans will laugh themselves to death before they could even put it to a vote. That is how strange their culture is. They don’t believe in corruption and will not pay for corruption.
He can then submit it to Congress to do all the cuts Congress wants. A 50% or 70% cut will still find him richer than the miserable $600k he is getting now. Unfortunately the American Congress is not so easy to deal with. There are opposition camps, there are also many checks and balances, above which, no one is allowed to write his own pay check or approve them.
My apologies, I digressed. Obama is fighting for more money for the American soldiers to conduct wars everywhere. As an American President, the top responsibility and the most important job is to conduct wars to feed the war industry and the soldiers. Nothing is more important than this. Not even fighting for his own pay rise. Anyway, his pay will only be decided by Congress and even if he admired the Singapore system and wanted it, he would not be able to do so.
It is a different culture. Asian culture is such that everyone is presumed to be corrupt. To be corrupt is in their blood. The only way to protect a guy from being corrupt is to legalise his payouts at whatever amount he thinks it will be needed to prevent him from being corrupt.
Can’t imagine Obama or any American President go in front of Congress or the American people and demand to be paid in millions to keep him from being corrupt. The Americans will laugh themselves to death before they could even put it to a vote. That is how strange their culture is. They don’t believe in corruption and will not pay for corruption.
Who should public institutions serve?
This is a non issue for commercial enterprises selling hamburgers, shirts, mobile phones or chicken rice. Their primary preoccupation is to serve their customers, make them happy with their services and products to boost their bottom lines. And they can only boost their bottom lines if the customers are satisfied with their services.
None of these enterprises can hope to compete and exist in the market if their only interest is profit to please the shareholders. And the shareholders know too, that without the customers, they can forget about profits and the business.
In a monopoly, things get a little hazy. They can dump the customers, cut corners, provide substandard services and products and still get away with it. The customers have no choice. And they can blatantly carry the shareholder’s interest around to spank the customers. ‘We are answerable to the shareholders you know!’
If they are selling IPad or IPhone that are in demand, and the customers die die must have, no issue. Willing buyer willing seller, even if it is a monopoly, they can still have their cake and eat it. What if it is a public service like transportation? I can see eyes popping out now.
A public transport company has to serve the customers and the shareholders and also the national interest. Let me take the first two first. Between the shareholder’s interest and the interest of the customers, which is more important? Silly me to ask. If it is a monopoly, they can screw the customers and tell them they need to make profits for the shareholders first. Customers come second or third. What can the customers do? This is the reality of life, just lump it.
What if the money to build the facilities and the business first came from the customers, indirectly through the public coffer? Now this will make the customers angry for sure. Using public money to start a monopoly business and tell the public that the first priority is to serve the shareholders.
Do they care if the customers are transported to their destinations fast, comfortable and safe? Can any of these be compromised? You tell me.
The more important role of public transportation is to provide an efficient transport system to lubricate the economy and social activities. The economy depends on the efficient and safe transportation of people and workers all over the island, for economic and non economic activities. Failing to do this is undermining the economy and the social fabric of the society. A country can be crippled by a major breakdown of public transportation. Can a transport company carry the shareholder’s interest on its head and say, my shareholder’s interest comes first, the train can be slow, uncomfortable, unsafe, these are secondary? Can a transport company price the fares so high that people find it too expensive even to travel, or to go to work?
The top priorities of a public transport company, started with public money, must be national interest, the moving of people safely and efficiently, at a reasonable cost, and also the comfort and interest of the commuters. The shareholder’s profit must come last, and incidental to providing a good and efficient service. The shareholder’s interest cannot be the first and top most priority of a public monopoly. But this is just my opinion. I may be wrong or I am wrong. The shareholder’s interest is all that is.
And don’t forget the uniquely Singapore logic that it can only be efficient if it is privatised. No wonder non privatised institutions are so inefficient.
None of these enterprises can hope to compete and exist in the market if their only interest is profit to please the shareholders. And the shareholders know too, that without the customers, they can forget about profits and the business.
In a monopoly, things get a little hazy. They can dump the customers, cut corners, provide substandard services and products and still get away with it. The customers have no choice. And they can blatantly carry the shareholder’s interest around to spank the customers. ‘We are answerable to the shareholders you know!’
If they are selling IPad or IPhone that are in demand, and the customers die die must have, no issue. Willing buyer willing seller, even if it is a monopoly, they can still have their cake and eat it. What if it is a public service like transportation? I can see eyes popping out now.
A public transport company has to serve the customers and the shareholders and also the national interest. Let me take the first two first. Between the shareholder’s interest and the interest of the customers, which is more important? Silly me to ask. If it is a monopoly, they can screw the customers and tell them they need to make profits for the shareholders first. Customers come second or third. What can the customers do? This is the reality of life, just lump it.
What if the money to build the facilities and the business first came from the customers, indirectly through the public coffer? Now this will make the customers angry for sure. Using public money to start a monopoly business and tell the public that the first priority is to serve the shareholders.
Do they care if the customers are transported to their destinations fast, comfortable and safe? Can any of these be compromised? You tell me.
The more important role of public transportation is to provide an efficient transport system to lubricate the economy and social activities. The economy depends on the efficient and safe transportation of people and workers all over the island, for economic and non economic activities. Failing to do this is undermining the economy and the social fabric of the society. A country can be crippled by a major breakdown of public transportation. Can a transport company carry the shareholder’s interest on its head and say, my shareholder’s interest comes first, the train can be slow, uncomfortable, unsafe, these are secondary? Can a transport company price the fares so high that people find it too expensive even to travel, or to go to work?
The top priorities of a public transport company, started with public money, must be national interest, the moving of people safely and efficiently, at a reasonable cost, and also the comfort and interest of the commuters. The shareholder’s profit must come last, and incidental to providing a good and efficient service. The shareholder’s interest cannot be the first and top most priority of a public monopoly. But this is just my opinion. I may be wrong or I am wrong. The shareholder’s interest is all that is.
And don’t forget the uniquely Singapore logic that it can only be efficient if it is privatised. No wonder non privatised institutions are so inefficient.
1/07/2012
I was overwhelmed
The events that were unfolding over the last two days must have numbed many Sinkies. After reading all the information laid out on the salaries of ministers, I am still in a state of shock.
The GE was like a minor earthquake of 5 in the Richter scale followed by an after shock in the Presidential Election. This revelation is like a 7. There will be bigger after shocks, and maybe a tsunami over the horizon. Things are happening very fast. The People’s perception and support for the ruling party is going to take a hit.
As an observer of political events, the GE was a small shake up and a little warning of worst to come. Seven months past, other than Boon Wan, who seems to be sensing something wrong and hastily trying to do some damage control, the rest do not seem to see any urgency for change. The 7 months of grace period to regain lost ground were wasted in a way. The expected hikes in fees and charges are flowing in predictably and in orderly fashion. Even minimum sums in CPF were raised as a non event. There is absolutely no need to consult the people, taking the people for granted.
Now this huge earthquake is going to shaken and loosen every foundation there is, and if a tsunami is to strike, it is going to be a waste land like Fukushima. I am still wondering how this salary thing is going to impact the ruling party and whether they can weather this perfect storm. At the moment there is no answer to the shocking revelation. What was being reported, written in blogs, are just the tip of an iceberg. The true sentiment of the people is simmering inside and would not come out in full, at least for the moment. There are still too much restraints and refrains from telling the truth. The PAP will never hear the truth.
What is more troubling is that there are some who are praising the Salary Recommendations. This will give the PAP a false sense of confidence that the prescription by the Review Committee is the solution they are waiting for. The more congratulatory support for the recommendations the more delusion they will get into. When the imperial physicians diagnosed that the emperor was only having measles instead of syphilis, there was a big sigh of relief and self congratulations. The physicians were brilliant. And the prescriptions were equally brilliant, just a few days of panadol and Vitamin C and the emperor will be back to good health. The diagnosis was what they wanted to hear and the prescription was what they wanted, and the imperial physicians did what they thought was best for everyone, including the emperor and their own good.
Is there any more goodwill left, any more political capital left, for the ruling party to survive this crisis, or I am just imagining things? What crisis? There will be a resurrection! Would the party be given a new lease of life after this storm and come out stronger? Or this is just a tropical storm and nothing more to it, and things will be back to normal in no time, with bright and sunny sky? Those who wanted the diagnosis to be measles would tell you that this is just a tropical storm and will blow over. Let’s hope they will be right again.
As a political observer, my crystal ball is revealing a different story.
The GE was like a minor earthquake of 5 in the Richter scale followed by an after shock in the Presidential Election. This revelation is like a 7. There will be bigger after shocks, and maybe a tsunami over the horizon. Things are happening very fast. The People’s perception and support for the ruling party is going to take a hit.
As an observer of political events, the GE was a small shake up and a little warning of worst to come. Seven months past, other than Boon Wan, who seems to be sensing something wrong and hastily trying to do some damage control, the rest do not seem to see any urgency for change. The 7 months of grace period to regain lost ground were wasted in a way. The expected hikes in fees and charges are flowing in predictably and in orderly fashion. Even minimum sums in CPF were raised as a non event. There is absolutely no need to consult the people, taking the people for granted.
Now this huge earthquake is going to shaken and loosen every foundation there is, and if a tsunami is to strike, it is going to be a waste land like Fukushima. I am still wondering how this salary thing is going to impact the ruling party and whether they can weather this perfect storm. At the moment there is no answer to the shocking revelation. What was being reported, written in blogs, are just the tip of an iceberg. The true sentiment of the people is simmering inside and would not come out in full, at least for the moment. There are still too much restraints and refrains from telling the truth. The PAP will never hear the truth.
What is more troubling is that there are some who are praising the Salary Recommendations. This will give the PAP a false sense of confidence that the prescription by the Review Committee is the solution they are waiting for. The more congratulatory support for the recommendations the more delusion they will get into. When the imperial physicians diagnosed that the emperor was only having measles instead of syphilis, there was a big sigh of relief and self congratulations. The physicians were brilliant. And the prescriptions were equally brilliant, just a few days of panadol and Vitamin C and the emperor will be back to good health. The diagnosis was what they wanted to hear and the prescription was what they wanted, and the imperial physicians did what they thought was best for everyone, including the emperor and their own good.
Is there any more goodwill left, any more political capital left, for the ruling party to survive this crisis, or I am just imagining things? What crisis? There will be a resurrection! Would the party be given a new lease of life after this storm and come out stronger? Or this is just a tropical storm and nothing more to it, and things will be back to normal in no time, with bright and sunny sky? Those who wanted the diagnosis to be measles would tell you that this is just a tropical storm and will blow over. Let’s hope they will be right again.
As a political observer, my crystal ball is revealing a different story.
1/06/2012
Grace Fu, feel sorry for you
I read what Grace Fu said. She came forward to serve the country with a cut in income, her career disrupted, the privacy of her life and family affected, and now this, a further cut in her salary.
This is indeed too much to ask for from a fellow citizen. Lose money, lost out in career and now lose more money. I can understand her unhappiness. I will support her if she chooses to leave politics and go back to advance her career and enjoy her higher income, and all the privacy of a normal citizen.
Sinkies are ungrateful indeed. Let’s all be more graceful and leave her alone. And if she so decides to return to the private sector, so be it, and wish her well. Happiness and peace of mind are important. If a political career is making her life so miserable, she should do what is good for herself and her family.
This is indeed too much to ask for from a fellow citizen. Lose money, lost out in career and now lose more money. I can understand her unhappiness. I will support her if she chooses to leave politics and go back to advance her career and enjoy her higher income, and all the privacy of a normal citizen.
Sinkies are ungrateful indeed. Let’s all be more graceful and leave her alone. And if she so decides to return to the private sector, so be it, and wish her well. Happiness and peace of mind are important. If a political career is making her life so miserable, she should do what is good for herself and her family.
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