Media Appearance: Kudlow & Company (5/30/07)

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Its the regular appearance on Kudlow tonite: We will be covering Executive Pay, the correction in  Shanghai, today’s reversal in the markets and new highs on the SPX, and the FOMC minutes.

On board are Joe Moglia of Ameritrade, major Bear Gary Shilling, and Wendell Perkins of Johnson Family of Funds.
 
You know my view on most of the items, except Executive Pay.

There are three problems that seem to dog most of the egregious CEO COmpensation cases: 1) Full Disclosure in advance; 2) Board of Directors with conflicts of interests; 3) Failure to represent the Shareholder’s interests.

As long as the Board does its job, is conflict free, and the pay packages get disclosed in advance, the Shareholders should be protected.

When those elements are missing  — when there are conflicts of interest, a failure to disclose, and/or a Board not protecting S/Hs — that’s you get the more abusive situations we have witnessed . . .

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What's been said:

Discussions found on the web:
  1. TexasHippie commented on May 30

    Executive pay does not bother me as much as golden parachutes. Any comments on the circumstances for which those are effective?

  2. chad commented on May 30

    whats the 07 estimated PE for the SPX? 16? oh yeah – start diggin a fall out shelter

  3. Eclectic commented on May 30

    So… huudja takeye pitture with this time?

    …..Bondie?

  4. Eclectic commented on May 30

    Chad,

    PEs could see 9-12 so fast you’d think you’d had a stickadictomy without anesthesia.

  5. scorpio commented on May 30

    i had a stickadictomy once. wasnt pretty. barry: in what universe is the Bd of D’s not conflicted when it comes to exec comp? we should just figure out the pre-2000 avg mgmt comp as % of market cap and penalize those companies and Ds who go over.

  6. GerryL commented on May 30

    I really think that if executive pay was made public at the time it is awarded that it would be far more reasonable. The directors wouldnt give some of these huge packages if they knew it was going to become public information.

    I also think that a problem with executive pay is that every board seems to think their CEO is a superstar. Most of the companies want to pay their CEO like he is Peyton Manning when in reality most of them are Eli Manning.

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