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To: VRWCmember
they have an interest in maximizing the return to their shareholders (as they should)

If that were true they would pay dividends to their shareholders instead of making billionaires out of their corporate officers.
178 posted on 06/01/2011 1:50:43 PM PDT by hedgetrimmer
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To: hedgetrimmer
If that were true they would pay dividends to their shareholders instead of making billionaires out of their corporate officers.

Any compensation to their corporate officers is actually a pre-tax expense, so the record profits that are the subject of the article are AFTER these massive compensations to the corporate officers are paid out. Depending on which firm you are discussing, most of the major corporations ARE paying dividends to their shareholders. If not, the earnings retained are reinvested into the firm for the purpoose of generating additional cash flows (returns) which increase the value of the stock so the investors can achieve their returns via capital gains.

181 posted on 06/01/2011 2:02:00 PM PDT by VRWCmember (_!_)
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