Maximizing Shareholder Value: A Dumb Idea

[CountDeMoney]

That falls into the same FAIL bin as 'Social Sciences'.

Social sciences doesn't even try to rely on math models to predict the outcome of a given policy, or to explain any social movement.  It's just based on feeling.

Sure it does.  Political Science, a branch of the social sciences, is all about statistical analysis now.

[MadImmortalMan]

Don't give me any shit, Lance.  I'm up to my ass in a mega Fortune 500 M & A ass rape.  Unlike some of the GOPtards around here watching from the upper deck, who like to pontificate on invisible hands and market equilibrium while they still have Greenspan's spooge stains on them, I'm down in the fucking huddle of Corporate Fucking America.

I AM maximized shareholder value.*







*most likely to be eventually eliminated, and contracted out to a concern in Mumbai, India.

Dunno all the details, but from a shareholder's perspective, your merger looks like a great deal. Almost one-for-one stock swap, the buying company pays twice the dividend yours does, etc. Maybe a great example of what the thread is about. 

A lot of times these things really do make a better combined company in the end though.

[CountDeMoney]

Dunno all the details, but from a shareholder's perspective, your merger looks like a great deal. Almost one-for-one stock swap, the buying company pays twice the dividend yours does, etc. Maybe a great example of what the thread is about. 

A lot of times these things really do make a better combined company in the end though.

They've been successfully fined for price gouging in Illinois.  They've decommissioned a nuclear power plant that had years left on its license to artificially reduce supply and increase prices.

They also contract everything out. 25% of our corporate workforce is going to be eliminated off the bat, with more reduced over the first 2 years, as those roles get contracted out both here and overseas.

They are precisely what the thread is about.  But not exactly a great example.

[MadImmortalMan]

So, yeah. The shortsighted "immediate gains" type of shareholder value that sacrifices the longer-term health of the company. That's too bad. And too common.

[Caliga]

*checks*

Heehee, I own stock in one of these two companies... not the one Money works for.

[Caliga]

Dunno all the details, but from a shareholder's perspective, your merger looks like a great deal. Almost one-for-one stock swap, the buying company pays twice the dividend yours does, etc. Maybe a great example of what the thread is about. 

A lot of times these things really do make a better combined company in the end though.

My company has been on a buying spree lately.  Everyone we acquire is like "wow your company is so ossum look at these amazing benefits".  Then, they all get fired.   It's cute watching the pattern repeat each time.

OTOH, we have retained top talent from most of the acquisitions and found them something or other to do in the parent company.

[MadImmortalMan]

Cal works for Mitt Romney.

[Caliga]

Cal works for Mitt Romney.

I wish.  He's awesome.

I just got back from the Christmas party... oddly there were a bunch of Newport Beach merger victims there, some of whom have end dates in January.  What's the point of flying them out here for a Christmas party when they're due to be laid off?   Well, they seemed to be having a good time at least.

[Ideologue]

Dunno all the details, but from a shareholder's perspective, your merger looks like a great deal. Almost one-for-one stock swap, the buying company pays twice the dividend yours does, etc. Maybe a great example of what the thread is about. 

A lot of times these things really do make a better combined company in the end though.

My company has been on a buying spree lately.  Everyone we acquire is like "wow your company is so ossum look at these amazing benefits".  Then, they all get fired.   It's cute watching the pattern repeat each time.

[The Brain]

So, yeah. The shortsighted "immediate gains" type of shareholder value that sacrifices the longer-term health of the company. That's too bad. And too common.

They are not destroyers of companies. They are liberators of them!

[HVC]

I just got back from the Christmas party... oddly there were a bunch of Newport Beach merger victims there, some of whom have end dates in January.  What's the point of flying them out here for a Christmas party when they're due to be laid off?   Well, they seemed to be having a good time at least.

you don't want to know what they did in the kitchen while no one was looking

[CountDeMoney]

*checks*

Heehee, I own stock in one of these two companies... not the one Money works for.

Of course you don't*;  ours has been driven into the ground and suppressed on purpose for years.  There's a reason the CEO made Forbes' Top 5 Worst CEOs For The Buck" this year.


*Then again, neither do I.

[Caliga]

Whoops, no, wait, I own stock in Entergy (ETR).

[Razgovory]

You sure about that?

[Caliga]

Yes, I double checked which is what prompted me to write that post.  My position is up 13.92% since I bought it in August.