Monday, 27 May 2013

How then do you assess management quality?

Those in management should have integrity, intelligence and also must be hardworking.  Most importantly, they should have integrity.  Search and look for integrity in the managers; without this, their intelligence and hardworking will work against the interest of the shareholders.

In present day perspective, the shareholders and the management interests are linked or in conflict mainly in two principal areas of:

(1)  competence of management and,
(2)  policies of management toward stockholders - notably in the matter ofdividends.

What are your views of companies hoarding cash aplenty when perhaps, the better decision is to distribute the cash to the shareholders in dividends or share buy-backs?

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