The headline indicated "investors" are unhappy that Samsung Electronics gave its workers a big bonus.
The "investors," such
as Kyobo Axa Investment Managers and Templeton Emerging Markets Group and IBK
Investment & Securities, were willing to complain in public that Samsung
has distributed about $1 billion of its $50 billion cash hoard to its 240,000
employees—an average $4,000 each.
These institutional shareholders
want a piece of the rock.
That's fair. Samsung, like so
many big American corporations, is holding way too much cash—I say "way
too much" because the cash isn't doing the company much good; if it can't
be invested profitably it should be returned to employees and shareholders.
And the big investment firms
are saying just that. I'm in agreement, Samsung could sensibly pay out some of
that cash to everyone who owns their stock.
Really, it's just the tone of
the carping from Kyobo and Templeton and IBK and the other "investors" who, I suspect, don't care a fig
about employee morale at Samsung or the 20-year transformation of the company
into a world-class competitor in the
smartphone business.
Kyobo and Templeton and IBK and their buddies just want the cash now, and they're ripped that Samsung employees got some.
Not a noble sentiment.
Amazing how you travel from agreeing with the employee bonus and then agree that.. stockholders should get a larger dividend or stock buy back and then with no stats or facts take a swipe at institutional investment. Seems like an unfounded complaint....just saying
ReplyDeleteAnonymous missed my point: I wasn't taking a swipe at institutional investment, I was taking a swipe at greedy, insensitive institutional investors.
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