http://uk.pokernews.com/news/2015/07/be ... -18541.htm
Comment:
I appreaciate what has been done to shareholders(unfortunately, Im not one of them- being in the worse group, as a betfair a user), but how can you set a target by an error?
Some of us are struggilng, but some not.... [News]
He owes you and your good lady and nice meal Peter - you've probably accounted for half of that bonusEuler wrote:I spotted the award in the annual report notes and tried to raise awareness of it, but curiously the financial press didn't seem very interested. It's an obscene amount, completely unjustified.
The problem with the big bonus culture is that it motivates the CEOs and execs to do anything to increase the share price in the short to medium term, perhaps at the detriment to the long term prospects of the company. This guy will be gone in a few years , a rich man , then it will be the next guys problem
The whole modern incentive structure is wrong. People don't benefit by thinking and implementing decent long term plans. The only company I know that thinks and acts like that in Berkshire Hathaway and look at that for an example!
A lot of ceo's don't care if they completely destroy companies in their pursuit of a short term profit. As stated above they won't be around and can leave somebody else to sort it out.
Typically I'll often sell shares if the CEO leaves. If everything looked cool and was under control why leave?
Breon did the classic new CEO thing which was write off a load of costs and force a crisis so he could put in place all the things he needed, while getting rid of people that didn't fit his vision.
A lot of ceo's don't care if they completely destroy companies in their pursuit of a short term profit. As stated above they won't be around and can leave somebody else to sort it out.
Typically I'll often sell shares if the CEO leaves. If everything looked cool and was under control why leave?
Breon did the classic new CEO thing which was write off a load of costs and force a crisis so he could put in place all the things he needed, while getting rid of people that didn't fit his vision.
Ed Wray was happy: -
http://www.theguardian.com/business/201 ... llo-payout
For a near monopoly I'd argue that such a pay out was not justified.
http://www.theguardian.com/business/201 ... llo-payout
For a near monopoly I'd argue that such a pay out was not justified.
I wonder how long his momentum will last, and will we have another industry twist towards betting exchanges as we had between 2005- 2010 (I remember when Wh and others issued an open letter against p2p exchanges worrying about their businesses - but a lot has changed in this matter(they seem not to be worry as they proved that they are able to operate on big margins- customers are very often not interersted getting highest price).
Im worry that Betfair as a corporation will never want their customers to get richer, as they are looking to maximise their profits. They are proving that odds makers are not needed as they running their own fixed odds at exchange(I have no doubt about it). From positives I see that Breons momentum(costs cuts, his sportsbook vision) cant last forever, there is major improvement at Matchbook, and Betdaq.
Im worry that Betfair as a corporation will never want their customers to get richer, as they are looking to maximise their profits. They are proving that odds makers are not needed as they running their own fixed odds at exchange(I have no doubt about it). From positives I see that Breons momentum(costs cuts, his sportsbook vision) cant last forever, there is major improvement at Matchbook, and Betdaq.
I have no issue with entrepreneurs creating large amounts of wealth.
But I have big problems with the rise of a management class extracting wealth from shareholders. We get what we deserve. We outsource our investment to so called professional managers (which as buffet always points out can't beat the index over any meaningful period). Those professional managers are self interested with short-term performance fee goals and short term bonus structures. They are aligned with the management class. Together they are aligned in streaming the money of regular mum and dad investors to themselves. withdraw your capital from these organisations and change will be forced.
But I have big problems with the rise of a management class extracting wealth from shareholders. We get what we deserve. We outsource our investment to so called professional managers (which as buffet always points out can't beat the index over any meaningful period). Those professional managers are self interested with short-term performance fee goals and short term bonus structures. They are aligned with the management class. Together they are aligned in streaming the money of regular mum and dad investors to themselves. withdraw your capital from these organisations and change will be forced.
Thats true. Most fund investment managers have little or none of their own money invested in the funds. They rely on a percentage of the investment as commision. And as stated above... few outperform the S&P 500 over time. Which implies you can do at least as well if you invested your own money taking into account what you would save in fees
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
I agree with that but I would say there are many other companies other than Berkshire Hathaway with the long term mindset, they just don't tend to be the flashy talked about companies as much.Euler wrote:The whole modern incentive structure is wrong. People don't benefit by thinking and implementing decent long term plans. The only company I know that thinks and acts like that in Berkshire Hathaway and look at that for an example!
Two I like over the pond are Markel (the mini Berkshire) and Zillow.
The worse thing to ever happen to BF was going public. It needs to be taken private again if the exchange is over to become a priority again. If it doesn't go private I don't hold out much hope for the exchange becoming what it really should be.