Entire Site

Creative Edge


    Copyright
    Praise for Predators and Profits
    About the Author
    Foreword: What Went Wrong with Capitalism?
    Introduction: Raw Greed and Red Flags
    Acknowledgments
    Ch. 1. Sages and Charlatans: Avoiding the Fads, the Buzz, the Rip-Offs, and the Merely Dumb
    Ch. 2. Pipedreams and Big Lies
    Ch. 3. The Superstar CEO: Celebrities, Showmen, and Destroyers
    Ch. 4. Jets, Parachutes, and Stealth Wealth: Pay for Performance or Pay for Plundering
    Ch. 5. Caffeine Badly Needed: Sleepy, Inept, and Tainted Boards
    Red Flag 1: Sudden Unexplained Resignation of a Director from a Board
    Red Flag 2: When the Board Rarely Meets
    Red Flag 3: When “Independent Board” Means the CEO’s Grocer Is a Director
    Red Flag 4: Boards Lacking Outside Directors Who Are Respected Business Figures
    Red Flag 5: Companies in Which the Chairman and the CEO Are the Same Person
    Red Flag 6: Professional Directors Who Are Keener on Collecting Fees Than Aiding Shareholders
    Red Flag 7: Boards That Have a Large Number of Long-Serving and Elderly Directors
    Red Flag 8: Too Many Academics and Ex-Politicians May Lead to an Uncritical Board
    Red Flag 9: A Compensation Committee in the CEO’s Pocket Lacks Independence
    Red Flag 10: Cross-Board Memberships Can Lead to Conflicts of Interest
    Red Flag 11: Directors Who Don’t Own Much of Their Company’s Stock
    Red Flag 12: When a Company Hits Low Points in Corporate Governance Rankings
    Red Flag 13: Audit Committees That Don’t Take Responsibility for Policing Auditors
    Ch. 6. Growing Mushrooms: The Art of the Opaque, Sneaky, and Buried
    Ch. 7. Culture of Greed: Sports Stadiums, Shooting the Messenger, and Rank and Yank
    Ch. 8. Earnings Tricks and Games: Manipulating the Numbers and “Creative” Fraud
    Ch. 9. Goosing, Stuffing, and Faking: Tricks of the Trade to Drive Revenue Up and Costs Down
    Ch. 10. Beyond Their Means: Balance Sheet Clues That May Stop You from Losing Your Shirt
    Ch. 11. Snakes and Ladders: Spinning, Flipping, and Walking through Wall Street’s Walls
    Ch. 12. At the Scene of the Crime: Funds Became Part of the Happy Conspiracy
    Ch. 13. Where Were the Auditors? Counting Fictitious Beans
    Ch. 14. Media Munchkins and Masters: Separating Puff Piece Writers from Hard Diggers
    Ch. 15. Abstention to Follow Addiction: When Disenchantment with Low Returns Hits Home
    Appx. A. Tips for Handling Your Broker, Financial Adviser, or Financial Planner
    Appx. B. A Glossary for Investor Survival
    • Create BookmarkCreate Bookmark
    • Create Note or TagCreate Note or Tag
    • PrintPrint
    Share this Page URL
    Help

    Chapter 5. Caffeine Badly Needed: Sleepy... > Red Flag 9: A Compensation Committee...

    Red Flag 9: A Compensation Committee in the CEO’s Pocket Lacks Independence

    All the requirements for “independent” directors in the world won’t make any difference if they are so smitten by their CEO that skepticism goes out the window. Investors should be on their guard if they read comments from the board or one of its committees that deify the CEO. It puts that CEO in a position to milk such sentiment for all it’s worth.


    PREVIEW

                                                                               

    Not a subscriber?

    Start A Free Trial


      
    • Creative Edge
    • Create BookmarkCreate Bookmark
    • Create Note or TagCreate Note or Tag
    • PrintPrint