b12345 -> RE: Analysis: Why Home Depot can't deliver (3/28/2007 9:41:19 PM)
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Unfortunatly it is the shortsidedness of much of corporate america that I think is causing the problems mentioned. CEO compensation tied so heavily to intermediate term options, and wal-street so sensitive to meeting or exceeding short-term expectations. If more companies quit giving quarterly guidence, brough some sanity back to executive compensation, and generally looked more long term, companies would care more about reputation. The huge payroll cost cutting is a short term solution, and seems as though it may be hurting HD considerablly in the long run. If more boards adopt a Buffetesque approach of, "if you make some mistakes and lose the company some money, no big deal, I understand...If you do something that compermises the integraty and repution of the company I will be completly unforgiving," And wallstreet investors could look past 13 weeks, we would experience a more effecient allocation of resources, and thus have a stronger economy, and normal people, both employees and customers will start to feel human again. And here both HD and Lowes kind of suck. I ahve spent plenty of time in both trying to find someone who knows something to help me out. B
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