Investors Advocate Urges Shareholders and Analysts to Focus on Revenue Growth, Share Price Performance and Executive Compensation
July 28, 2016
All shareholders, fund managers and stock analysts have a responsibility to scrutinize companies in which they invest and ask tough questions especially during upcoming quarterly calls and annual meetings. Earnings can be easily manipulated and managements often resort to short-term or ill-advised strategies that are designed to yield misleading results. This is why reported earnings may need to be disregarded or at least be given much less weight than revenue growth and share price performance which are more objective.
Shareholders and analysts are often too timid to challenge CEOs and board chairpersons. We must constantly evaluate these individuals’ performance and demand changes when needed. Executive compensation continues to be disconnected from key metrics such as revenue growth and share price performance and this is unacceptable.
Investors need to take an active role in ensuring positive investment results. A good place to start is reviewing and questioning revenue growth and share price performance relative to executive compensation.