CEO Mega-Mansion factor
Businessweek did a summary of this study (scroll midway down) of the inverse relationship between a CEO’s house size and stock performance. Extravagant, big spending CEO’s are not the people you want managing your money.
I’ve always like cheap, crusty CEO’s, like Jim Senegal at Costco. Though I don’t own any shares of Costco, if I’m going to give someone capital to invest, they better be darn frugal with it.
It seems that many CEO’s feel like they have spent their whole live working to get to the top, and the company owes them something, irrespective of how they perform. So they loot company.
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