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NVR, Inc. Message Board

  • billberggren billberggren Jun 25, 2004 10:09 AM Flag

    OT: Shareholder Bill of Rights

    *** Shareholder Bill of Rights ***

    I call for the complete elimination of stock and stock option payments to employees, board members, and ceos. Each share of stock represents a percentage ownership, it is not the right of the majority to take or dilute your minority portion of the company. If 70 percent of the stockholders want to give stock options, do a 9/10 reverse split to only those 70 percent shareholders that vote for them and put those 10 percent in a pool for options. A LAW SHOULD BE PASSED FOR SHAREHOLDERS THAT DO NOT WANT OPTIONS, NOT BE FORCED TO GIVE THEM! It is the CEOs job to increase shareholder value to the maximum. It is the directors job to monitor the CEO. EVERY YEAR, SHARES OUTSTANDING WILL NOT CHANGE OR DECREASE AND DILUTED SHARES OUTSTANDING WILL EQUAL SHARES OUTSTANDING. A company should strive for no debt, look for areas to increase growth, pay out 10-30 percent of the earnings as dividends, and be buying back stock. Both Warren Buffett and Peter Lynch claim shares outstanding control as one of the most important criteria in selecting stocks and options. The annual gain of a stock is basically (% inflation + % internal growth + % buybacks - % option/stock dilution). Why would any CEO increase options to employees if it hurts growth? The reason is they are conning the public, claiming options give incentive to executives to cause the stock to go up. IT IS THEIR JOB TO INCREASE SHAREHOLDER VALUE! To solve the problem there must be a path to DEMOTE executives that are not performing their jobs. Even companies buying back 10 percent of their stock, should be looking to eliminate their options plans.

    Capital gains taxes should be eliminated. 1) Schedule-D could be thrown in the trash - it is a very complex form to fill out often taking days to fill out; 2) It will allow investors sell and diversify into other stocks easily creating a more efficient and a less corrupt market; 3) It is much better to cut capital gains rates than corporate income tax rates, since foriegners might own u.s. stocks and thus pay taxes at the same rate rather that the lower rate they presently pay compared to u.s. citizens; 4) It is very possible and legal for terrorists or foriegn foes to buy u.s. stocks to fund their activities, why give them the benefit of a lower tax rate than u.s. citizens; and 5) foriegn stocks owned by u.s. citizens could be taxed at full capital gains rates giving investors incentives to create jobs and companies within the United States. The only problem according to Robert Reich, is through loopholes, corporations presently only pay a 7 percent effective income tax rate. I am not sure if this is accurate, but it may be more wise to tax revenues and not income. The entire tax code could be replaced with:

    "All corporations and companies, must pay an revenue tax rate of X percent to the federal government. All individuals making less than U dollars will pay no income tax. All individuals making V dollars, which is more than U dollars, will pay (V dollars - U dollars) * Y percent. The numbers X, Y, U, and V will be determined by politicans such that the budget is balanced. All expenditures by the federal government will be published with voting records each year and provided free to taxpayers".

    In an off topic, the natural resources on public lands belong to the public not the government or corporations. All these freeloaders should be kicked off the land. Each national forest service office should have a free pole permit system where U.S. citizens can get a permit to cut enough trees to build a house (as managed by forest scientists). Also, each year each citizen should get a national resources check, for all the oil, gas, water, fish, rent, and fiber removed from the public lands. Say no to ANWR unless you get this check. I would love the day when a down and out person picks up his natural resources check.

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