Post by AskTheWiseOldMan on Jul 29, 2007 21:17:28 GMT -4
Source Morningstar Investments
Five Stocks that Deserve an F
Friday July 27, 7:00 am ET
By Greggory Warren, CFA
Tyson Foods (NYSE:TSN - News)
"..., We'd be remiss not to mention yet another fine example of poor stewardship of investors' capital in the meat-processing category.
According to Morningstar analyst Ann Gilpin, the company's advertising slogan, "Powered by Tyson," is a perfect motto for the firm's take on corporate governance. Former board chairman Don Tyson controls 75% of the firm's voting shares through a network of personal holdings and family trusts. After running afoul of federal regulators in 2004 for failing to disclose $1.7 million in unauthorized corporate perks for Don Tyson, it looks like the firm hasn't cleaned up its act; it continues to engage in practices that enrich the family at the expense of other shareholders.
The company still has operating leases for farms, equipment, and other facilities with family members, and although technically Don Tyson is "retired," the company pays him an annual salary of $1.2 million, loans him the company jet for personal use, provides security services for him, and reimburses him for tax and estate-planning advice and personal use of company-owned vacation homes and skyboxes--all in exchange for his "advisory services."
If Tyson dies, his three children stand to receive the cash equivalent of his total compensation until 2011. It's amazing what one can arrange as the controlling shareholder in a publicly traded firm."
-end quote-
biz.yahoo.com/ms/070727/198861.html?.v=1
Remember the $5 Million proceeds from the bond issue that Union county GAVE to Tyson Foods. Thats a donation of $250 for every person in the county... $1,000 for a family of four. Who needs that $1,000 more, Tyson or a 4-person family in Union County?
According to Judge Barrett, Tyson needed it more.
Five Stocks that Deserve an F
Friday July 27, 7:00 am ET
By Greggory Warren, CFA
Tyson Foods (NYSE:TSN - News)
"..., We'd be remiss not to mention yet another fine example of poor stewardship of investors' capital in the meat-processing category.
According to Morningstar analyst Ann Gilpin, the company's advertising slogan, "Powered by Tyson," is a perfect motto for the firm's take on corporate governance. Former board chairman Don Tyson controls 75% of the firm's voting shares through a network of personal holdings and family trusts. After running afoul of federal regulators in 2004 for failing to disclose $1.7 million in unauthorized corporate perks for Don Tyson, it looks like the firm hasn't cleaned up its act; it continues to engage in practices that enrich the family at the expense of other shareholders.
The company still has operating leases for farms, equipment, and other facilities with family members, and although technically Don Tyson is "retired," the company pays him an annual salary of $1.2 million, loans him the company jet for personal use, provides security services for him, and reimburses him for tax and estate-planning advice and personal use of company-owned vacation homes and skyboxes--all in exchange for his "advisory services."
If Tyson dies, his three children stand to receive the cash equivalent of his total compensation until 2011. It's amazing what one can arrange as the controlling shareholder in a publicly traded firm."
-end quote-
biz.yahoo.com/ms/070727/198861.html?.v=1
Remember the $5 Million proceeds from the bond issue that Union county GAVE to Tyson Foods. Thats a donation of $250 for every person in the county... $1,000 for a family of four. Who needs that $1,000 more, Tyson or a 4-person family in Union County?
According to Judge Barrett, Tyson needed it more.
