That could be a problem for shareholders when same-store sales and margin gains slow down, as they inevitably will.
Others argue individual shareholders suffer from a collective action problem, where they are forced to sell out for a price above the market price because other shareholders will, even if the entire company is worth much more.
Many corporations are reluctant to disclose the full impact and cost of the problem to their shareholders because they fear legal action.
The Cyprus deal puts the burden for dealing with problem banks on their shareholders and creditors - in this particular case, customers with large bank balances - rather than the government and taxpayers, or bondholders.
Remember how the former shareholders thought thought that none of this was their problem.
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All older companies accumulate excess baggage -- a militant, profit-crushing union, an outmoded sales channel or even (a problem unique to our day) legacy shareholders and analysts.
Not that they thought it was their problem or their business anymore, the former shareholders thought that Midcoast was going to operate Tarcon as a going concern.
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The problem is, most mergers to achieve significant returns for shareholders.
But the problem is that the profits of private enterprise go exclusively to shareholders.
Problem number three seems to be based on the allegation that shareholders just object to high pay regardless.
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The presence of greedy family members, hungry for more than their share of earnings and perks from the company, may be worse than the well-studied agency problem of hired managers sucking benefits from the company that should accrue to public shareholders.
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Thus the most urgent issue for the CSO to address will be to address the root cause of the problem and change the bottom line of the organization from financial returns to the shareholders to delighting the customer with truly sustainable products and services.
Problem is, any further raise would be significantly dilutive, at least to most of its shareholders.
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