EXECUTIVE COMPENSATION

It's earnings season again and as I've been reading through the annual reports from some of the companies I am a shareholder of, I can't believe some of the pay packages and incentive programs the corporate boards are asking shareholders to vote for. Don't get me wrong, if you do an honest days work I truly believe you should be adequately compensated. However, is there truly any individual in any corporation in the world who contributes so much to the success of the company that they deserve untold millions of dollars in salary and compensation? Well maybe Warren Buffett or Bill Gates, but they've proven their worth to shareholders by making a great deal of them rich beyond their wildest dreams. Otherwise, I can't think of any good reason why anyone in their right minds would vote to increase compensation to corporate executives who already make obscene amounts of money.

I still believe in corporate America, but I think some of the people in charge of our corporations need to be reminded, without shareholders they wouldn't have a job or a business to run.

In one of the companies I've invested in, board members are paid a retainer of $70,000 a year, well above the average take home pay of most U.S. citizens. On top of their "retainer" they are paid an additional $50,000 per year for each committee on which they serve, plus expenses for all meetings they attend and you better believe their not staying at cut rate motels and eating fast food. This is not their normal job. Most of these people serve in highly paid positions with other companies while serving as members of the board of directors with this particular corporation. In addition, they may also serve on any number of additional boards and are most likely receiving similar compensation from those companies as well. So if they serve as a board member and on at least one committee, they are already taking home $120,000 per year, plus expense reimbursement for very little time spent on actual company business. For these same people to ask me, as a shareholder, who earns maybe 3 to 6% per year in dividends on my investment, to vote for an increase in executive compensation and increased retirement benefits is absolutely ludicrous!

I am from Missouri. If any of these people think they actually contribute enough to their company to justify a salary of a million dollars a year or more, then they have to "Show Me". As far as I'm concerned, corporate boards are way out of touch with the average shareholder and shareholders interests and I for one vote against any and all compensation proposals. As far as I'm concerned, when you expect something for nothing, that's call welfare! So when I see their contributions to the company in the form of increased earnings, increased dividend payouts to shareholders and increasing shareholder equity, then maybe they can talk to me about compensation. Frankly I feel that I've contributed enough towards their wealth and retirement programs, it's time the average shareholder started getting paid.