Comments on: Goldman board muppet of the day, James Johnson edition http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traducere daneza romana http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-53445 Mon, 29 Sep 2014 13:55:10 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-53445 “Con la entrada en vigencia del acuerdo hoy hay cerca de 18 aos de proteccin para el sector lcteo colombiano que hay que aprovechar para hacer la transformacin de la industria lctea colombiana”, agreg por otra parte el ministro.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-38174 Sat, 21 Apr 2012 22:01:51 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-38174 alea, was running the mondale and kerry campaign meant to be a recommendation?

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-38115 Fri, 20 Apr 2012 03:55:24 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-38115 “Wall Street has crossed the line into RICO territory”

This is why I cut Mr Fox slack.

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-38094 Thu, 19 Apr 2012 17:15:31 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-38094 Not providing D&O insurance to directors and having directors for whom $50k makes a noticeable difference to their annual income are mutually exclusive, unless the directors in question are so stupid that they ought to be disqualified for lack of intelligence. The classic phrase “anyone can be sued for anything” applies, and a public company director can easily spend high six or low seven figures to defend a suit in which the director ultimately prevails. What rational person would want to take that risk for $50k per year, unless they’re sufficiently wealthy that the prestige of being on a board outweighs the risk of having to spend a million or two?

Alternatively, this may be one of those cases where Buffett’s folksy comments simplify or distort a more complex reality. Berkshire Hathaway can broadly indemnify its directors against any claims arising out of their service as directors without purchasing D&O insurance. In that case, directors are simply relying on Berkshire’s financial strength rather than the solvency of a third-party insurer. I suppose that’s an incentive to make sure that Berkshire doesn’t go bankrupt, though that’s a pretty low bar to clear.

Regarding James Johnson, I concur that on the merits he is a poor choice to serve on a board. As an investor, however, I would rather that large public companies have engaged board members paid $500k per year than ones paid $50k who lack the time, experience, or inclination to oversee management. For example, take the example of a company CEO who also serves on 4 or 5 other company boards – how much time can this person reasonably devote to each of them? I’ve often thought that large institutional investors would be wise to recruit people to serve as professional board members – i.e., their job is serving on something like 3 to 5 corporate boards, and institutional investors actively push these people onto boards suited to their skills or background or just to break up overly clubby boards. Retired executives come to mind as the most likely candidates for this role, though perhaps also people with other backgrounds.

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-38093 Thu, 19 Apr 2012 17:12:45 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-38093 “But Goldman’s shareholders don’t want to be represented by a group of muppets which will rubber-stamp anything the CEO wants to do.” (FS, Article)

Says who?

S/Hs want GS to make every nickel it can – by any method it can – and give them their cut, after the Street boys take theirs. Do you really believe any shareholder thinks the board members know how to run that kind of ruthless “rip their eyes out” operation more productively than the Wise Guys?

Wall Street has crossed the line into RICO territory, and already pleaded to more charges than it takes to put a mafia Don in a cell. The shareholders are just part of the “crew”.

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By: alea http://blogs.reuters.com/felix-salmon/2012/04/19/goldman-board-muppet-of-the-day-james-johnson-edition/comment-page-1/#comment-38089 Thu, 19 Apr 2012 16:48:38 +0000 http://blogs.reuters.com/felix-salmon/?p=13330#comment-38089 “When Senator Barack Obama chose James A. Johnson to run his vice presidential search, he was choosing an ultimate Washington insider: a nationally recognized business executive who also helped Walter F. Mondale and John Kerry pick their Democratic running mates…”
http://topics.nytimes.com/topics/referen ce/timestopics/people/j/james_a_johnson/ index.html

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