So my friend and I decided to start a company. I put in $4,900 and he put in $5,100 (so was a 49% share holder and he was 51%). We named him President of the company and I remained a stockholder. We made 10 million dollars last year profit. For being President of the company, he is paid a salary of 80k/year. But he decided at the last minute to reward his performance with a 10 million dollar bonus to him. So the company made nothing and I got 49% of nothing.
If this happened in your life, you would be screaming FOUL. But isn't this what happens on Wall Street every year? Do all the stockholders realize that their dividends are paid out according to the bottom line of the company; and that the exorbitant bonuses paid to the executives directly lowers their return on investment? The stockholders should be able to vote, not just the ivory-tower board of directors.
I want to invest for my and my family's future. I would be happy to find a company that I believe in and invest in it. But I don't want my money going to the executives. I want it going back in to the company or out to me. Big business is so corrupt.
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