House and Senate #TaxPlans
Corporate Boards of Directors/Trustees - oversight?
GE has a new CEO. The old CEO retired after many years. GE got caught up in the financial crisis and ended up getting rid of much of its financial businesses. It also got rid of its television network and then bought other businesses. In the minds of many Americans, GE made great home appliances. It also made wonderful jet engines and ones that powered electric power plants, locomotives, medical equipment and more.
GE's board of directors routinely approved GEs business acquisitions and sales. An oil services company? Why?
Today GE seems to be a mess.
One of the board members is from a mutual fund giant which votes the shares of GE held in mutual funds that it owns. It doesn't poll its mutual fund share holders on how they would vote GE shares if they owned the stock outside of say a S&P 500 fund. Maybe GE's management would not have made some of the decisions over the years if mutual funds voted shares according to how their shareholders would vote them. This page doesn't approve of board of director compensation based on shares "awarded" to either the board members or the executives. What happened to the concept of board members having a stake in the corporation by spending their own money to buy the shares? That's what this site would do. Compensation of S&P 500 board members seems to be excessive for what's essentially a part time job. The link between the various board pay plans seems to be a limited number of professional compensation consulting firms. Interesting...
it's hard to get people interested in changing how mutual fund companies decide to vote the shares that their customers actually own. Unless they do, that doesn't help improve corporate performance. Nor does it seem fiscally responsible on the part of the mutual fund companies or the SEC to approve the process. GE's shares have dropped a lot and the dividend sliced. Could an engaged board have prevented some of it? We don't really know but it would be nice to see the mutual fund companies change how they vote shares.
Analysis - Pass the #TaxPlan:
We live in a state with no income or sales tax. We used to live in a state with sales tax, state income tax, local income tax and property tax. We moved. Tens of thousands are moving out of the same state. Our new state is an oasis in a northeastern desert.
I like comparing plans. For us, both the House and Senate Tax Plans reduce our taxes. The Senate bill by a little more. Either is an enormouse improvement over the current tax system which is impossible to figure out without paying an accountant. It looks like most people actually could file their returns on a post card.
It's not the flat tax we'd prefer. But it is a lot better than the mess we have now.