Private company versus a public company and a suggestion

There is a private company owned by an individual or certain number of individuals. There is a public company that consists of publically traded stock. The private company has private ownership. The public company is owned by the public at large. There is a difference between private holding and public holding. Private companies can pretty much do what they want. They are not even bound to publically disclose their financials. A public company must make quarterly statement, announce high level decisions and other events that might impact stock price. They must supply much trustworthy information for public consumption.

All said, a public company is not a money trough for management. A public company is not ca hecking account with an unlimited supply of blank checks for management.

I suggest to make public companies exactly what they are-a public holding. The pay and benefits these companies pay management is ridiculous, unethical and thievery. If the manager wants to make the kind of money these men have become accustom to making, let him start up his own company or get hired by a private company who might be willing to pay him anything he wants. (I doubt it.)

One argument that is always used is these salaries are needed to retain talent. Well after the economic upheaval of the recent months I do not think their talent is worth keeping. I will add a few examples: Enron, Global Crossing, a number of banks, a number of hedge funds, the US auto industry who have given away double digit marketshare for many years, and on and on it goes. What his name the former CEO of Home Depot who took his hundreds of millions of dollars for cutting market cap in half. I would have to start a blog of examplle of these theives who stole money from the public coiffures. They are sure lucky they do not live in communist China, where many of the managers love to do business.

In fact with the dismal success of so many of these talented individuals I think I myslef could do a better job than they. What you don't think I could take a company bankrupt. What you don't think I could cut the marketshare of an industry by 50%. You don't think I could make bad mortgages. You bet I can. And I could make fewer numbers of bad mortgages. Folks, I know one think about banking. There needs to be 5% cash reserves. I would double or triple that to 10 or 15% and make good home loans, and be responsible for my own loans, and make a profit. Oh, by the way, my own credit union, keep 14% cash reserves on hand. I will save another journal entry for what how I could do better than the automotive executives.