A brief reprieve from the rising tensions and outrage over the missile attack that destroyed MH 17 and killed nearly 300 hundred innocent people occurred when Ukrainian separatists allowed international authorities to inspect the plane’s wreckage, and the remains of the dead and the aircraft’s black boxes to be transported to the city of Kharkiv, which is located in an area controlled by the Poroshenko government, and turned over to Malaysian officials.
There is little doubt that the Ukrainian separatists were responsible for the missile attack. The Obama Administration put on public display the results of the classified technology used by the American intelligence services that showed the missile was fired in territory held by Ukrainian separatists, and evidence of monitored conversations between Ukrainian separatists about shooting down the plane.
Isn’t it time to replace stock prices with a valuation rating that truly reflects the financial health of a company? Preposterous, you say. Well, maybe not.
C-Suites, shareholders and the investment community view high stock prices as the Holy Grail for determining a company’s value. Why? A consistently high stock price can result in big rewards for a CEO in the form of salary increases and large bonuses. Shareholders benefit as well with higher returns on their investments. What’s not to like?
With incentives like that, why shouldn’t a CEO of a company with mediocre results aspire to become a Wall Street star by cutting staff and R&D to reduce costs to elevate its profitability and its stock price? The company’s cash flow problems and lack of a pipeline for new products can wait.