Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mozenrat wrote:Wendz wrote:
If a company is practicing good governance, it is Conflict of Interest "whichever angle you look at it"... Soon enough, he might start approving credit for his "trucks-buying" company exposing us to losses incase his company fails for (lets say)reasons beyond his control .... after all, "both" companies are his, right? Complete conflict of interest it does not matter if we are benefiting now or not......
Honestly, I think we're taking this "good governance" issue too far... Surely approval of credit falls under the purview of executive and/or operational management and not the board of governors.. For some of this stuff, its a balance, by giving an ESOP to employees KenolKobil runs the risk that the employees may deliberately mistate financials in order to buoy the share price... on the other hand the ESOP enhances loyalty and could actually drive the employees to work harder if tied to performance @mozenrat; you've put it quite well. Actually, by getting the C&F deal, I become an "employee" of CMC - I do some work for them and they pay me. Actually, tender documents refer to the parties as "employer" and "employee".... So, my buying of the company shares is a kind of ESOP, only that I buy mine at the market rate... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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