Comments on: A quixotic approach to compensation? http://www.footnoted.org/gold-stars/a-quixotic-approach-to-compensation/ Michelle Leder's guide to what's hiding in SEC filings Fri, 21 Nov 2008 21:24:22 +0000 http://wordpress.org/?v=2.6.3 By: David J Phillips http://www.footnoted.org/gold-stars/a-quixotic-approach-to-compensation/#comment-3507 David J Phillips Fri, 05 Oct 2007 19:56:14 +0000 http://www.footnoted.org/gold-stars/a-quixotic-approach-to-compensation/#comment-3507 Wendy/Michelle: Frustrated shareholders of Quixote have witnessed the bull market from the sidelines, for the stock price has treaded water for four years, as the maker of energy-absorbing highway crash cushions continues to report pretax losses (last reported profit was for fiscal year ended June 30, 2003). "In a village in La Mancha (whose name I do not care to recall) there lived, not very long ago, one of those gentlemen who keep a lance in the lance-rack, an ancient shield, a skinny old horse, and a fast greyhound."~ Spanish novelist Miguel de Cervantes Saavedra, Don Quixote (1605) Senior management is not as chivalrous as Don Quixote de la Mancha, and it is doubtful that they would take up the order of knight-errantry: “ to defend maidens, to protect widows, and to rescue orphans and distressed persons." http://10qdetective.blogspot.com/2007/10/pay-for-performance-tilting-at.html My Best- David J Phillips, Publisher www.10qdetective.blogspot.com Wendy/Michelle:

Frustrated shareholders of Quixote have witnessed the bull market from the sidelines, for the stock price has treaded water for four years, as the maker of energy-absorbing highway crash cushions continues to report pretax losses (last reported profit was for fiscal year ended June 30, 2003).

“In a village in La Mancha (whose name I do not care to recall) there lived, not very long ago, one of those gentlemen who keep a lance in the lance-rack, an ancient shield, a skinny old horse, and a fast greyhound.”~ Spanish novelist Miguel de Cervantes Saavedra, Don Quixote (1605)

Senior management is not as chivalrous as Don Quixote de la Mancha, and it is doubtful that they would take up the order of knight-errantry: “ to defend maidens, to protect widows, and to rescue orphans and distressed persons.”

http://10qdetective.blogspot.com/2007/10/pay-for-performance-tilting-at.html

My Best-
David J Phillips, Publisher
http://www.10qdetective.blogspot.com

]]> By: David Harper http://www.footnoted.org/gold-stars/a-quixotic-approach-to-compensation/#comment-3506 David Harper Fri, 05 Oct 2007 16:22:23 +0000 http://www.footnoted.org/gold-stars/a-quixotic-approach-to-compensation/#comment-3506 Interesting. Reflects a realism: executive evaluation cannot be reduced to clean metrics. Though I would fault them for not sharing findings of the Lake Woebegone study ("let's all be 75th percentile"). Cox wants disclosure but laments length, his only premise that retail investors will study a better CD&A, that's disputable. Re the CEO helping to set his lieutenants pay, agreed, that is commonplace. In fact, it's necessary. The board evaluates/selects the CEO, but the CEO basically needs to tell the board about his lieutenants' performance. Interesting. Reflects a realism: executive evaluation cannot be reduced to clean metrics. Though I would fault them for not sharing findings of the Lake Woebegone study (”let’s all be 75th percentile”). Cox wants disclosure but laments length, his only premise that retail investors will study a better CD&A, that’s disputable.

Re the CEO helping to set his lieutenants pay, agreed, that is commonplace. In fact, it’s necessary. The board evaluates/selects the CEO, but the CEO basically needs to tell the board about his lieutenants’ performance.

]]>