I call for the complete elimination of stock and stock option payments to employees, board members, and ceos. This dilution will hurt the stocks value over time. A much better approach would be to give 10 percent of total earnings as a bonus to employees. Thus, if an employee leaves they lose the bonus. If they were to recieve options they could become millionaires without providing significant contribution to the company.
The company should strive for low or no debt. A company with no debt rarely goes out of business. A company with no debt will allow the company to get through the disasters or new additions. If new debt is created, it should be payed back as soon as possible. Some cash on hand is nice too.
Automatic stock buybacks, 20-50 percent or more of earnings should be spent buying back stock regardless of p/e. A high p/e may signify future value of the company shareholders perceive. Since this is the best investment available, buying your own shares should be the best way to use the stocks money, minus the amount to reduce the debt. If conditions are favorable, it might be wise to use debt to buyback shares, only if the 1/(p/e) is higher that either the tbond or tbill rate. If the share price is too high, consider spin-offs, or create a new division in a growth area. Thus, every year, shares outstanding will decrease and diluted shares outstanding will equal shares outstanding.
About 20 percent of the earnings should be paid as dividends. No secondary offering of stock unless under dire cash needs of the inital growth phase. All growth should come from preferably come from within. An exeception, might be to purchase a company in which you buy supplies.
The CEO and management should not be the highest paid employees of the company. This management should preferably come from below. The employees below put in the time to understand the business. The CEO should be paid within 10X the lowest paid employee. The engineers that develop the products and salemans might possibly be paid the highest paid within 20X.
Under no circumstances will the company be sold to another. Many of these are from large companies with little or no growth prospects.
you should also call for the company stop recklessly taking on debt buying back their own stock if you are concerned about the company's long term future, unless of cause you have a huge position and looking to hit exit door..........