Monday, July 18, 2016

WHEN PROFITS ARE SLIPPING AND EXECUTIVES WANT RAISES, SELL!

If you're invested in a company who's profits are dwindling, maybe they've cut the dividend and the company executives are giving themselves raises, it's time to SELL, SELL, SELL!  While slipping profits are enough to consider selling, it may just be a temporary setback, so you'd want to check it out and see what's causing the problem and decide whether you think they might make a comeback.  However, if profits fall and/or you've seen a cut in dividends and the company wants you to vote on executive compensation, better to just cut you're losses and get out of the investment, because they obviously don't have investors best interests at heart.  If they did, they would not be asking for a raise when they're doing a poor job of running the company.

While this might seem obvious, I've seen executive compensation plans approved time and again while companies are under performing.  To be honest, it makes me very angry as a shareholder that they would even ask for a raise when they're losing money for shareholders.  It's downright insulting when they do so after cutting dividend payouts.  I don't waste my time with it anymore, I show my disapproval by selling my shares and putting the money to work elsewhere.

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