Wednesday, December 26, 2007

Questions...questions...

Take extreme capitalism with its determined one-purpose seeking mentality and try to apply this to government. Does it mean that basically there are two completely different ways for value enhancement and that mostly due to ownership issues? Questions about centralization and decentralization raise, problems around mixed interests etc.

Try applying these HBR posed questions to the whole government (not to a specific government body) and what do you get? To my mind philosophically very interesting taskā€¦

* Have we left too much cash on our balance sheet instead of raising our cash dividends or buying back our own shares?
* Do we have the optimal capital structure with the lowest weighted after-tax cost of total capital, including dept and equity?
* Do we have an operating plan that will significantly increase shareholder value, with specific metrics to monitor performance?
* Are the compensation rewards for our top executives tied closely enough to increases in shareholder value, with real penalties for nonperformance?
* Have our board members dedicated enough time and do they have sufficient industry expertise and financial incentive to maximize shareholder value?

1 Comments:

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5:13 AM  

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