Written by Dr. Scott Brown, Ph.D.

I have a dear friend who is a medical doctor. I once mentioned to his secretary that it seemed to me that his ex-wife had really taken him torepparttar cleaners in their divorce. His secretary very quickly and forcefully admonished me and explained that his ex-wife wasrepparttar 151017 reason for his great wealth. I was fascinated when she described how his stay at home spouse has spent all of her free time learning to invest in stocks and turned their modest savings into a true gold mine! You can dorepparttar 151018 same if you will learn fromrepparttar 151019 correct investment coach. Your learning should be multi-facetted. You should first learn what makesrepparttar 151020 markets tick by reading Dr. Bob Shiller’s book “Irrational Exuberance”. This prestigious professor of economics has done an extraordinary amount of research into what really drivesrepparttar 151021 markets. Next you need to learnrepparttar 151022 actual mechanics of trading such as I teach in my comprehensive home study course that encapsulates over a hundred years of both trading skills and market knowledge. Once you haverepparttar 151023 knowledge under your belt then it is imperative that you developrepparttar 151024 iron edged discipline needed to succeed inrepparttar 151025 markets. You can develop your knowledge of discipline and investment psychology through Dr. Van Tharp’s home study course called “Peak Performance.”

Reading "Between The Lines" In Annual Proxy Statements

Written by Paul R. Dorf, Ph. D., APD

Upper Saddle River, N.J. - May 11, 2005 - Now that a large number ofrepparttar proxy statements for public companies with fiscal years ending December 31, 2004 have been issued, those of us that scrutinize them for a living, as well as those that have invested in those companies, have an opportunity to analyze their executive pay packages in detail. With all ofrepparttar 151016 attention on Corporate Governance and how to improverepparttar 151017 level of transparency and insure that a strong relationship exists between pay and performance, these statements provide for interesting reading.

Many comb through these filings withrepparttar 151018 intent of learning ifrepparttar 151019 compensation is reflective ofrepparttar 151020 recent trends towards “pay-for-performance”. In reality, doesrepparttar 151021 compensation accurately reflectrepparttar 151022 company’s financial performance? And does it make sense? We also are interested in learning how companies are reacting torepparttar 151023 recent and anticipated changes in tax, accounting rules, and related legislation andrepparttar 151024 extent to which those changes are affecting executive compensation design.

With this in mind, we have been reading various recent filings, which when analyzed, still leaves some doubt ifrepparttar 151025 companies are being as open and straight forward as we have all hoped for. Unfortunately, there is still a tendency for companies to use ambiguous, unclear language. In some instances,repparttar 151026 linkage to performance is still questionable. The key is to read what has been presented in a very careful way, taking into consideration what is said, and in some instances, what is not said. Some examples from a recent proxy issued by a large company provide evidence of why it is important to read and interpret them very carefully:

“Our policy is to maximizerepparttar 151027 tax deductibility of compensation payments to (Top Management) under Section 162(m) ofrepparttar 151028 Internal Revenue Code andrepparttar 151029 regulations thereunder (Section 162(m)). Our shareholders have approved our incentive plans designed and administered to qualify compensation awarded thereunder as “performance-based”. We may, however, authorize payments to (Top Management) that may not be fully deductible if we believe such payments are in our shareholders’ interests.”

This means thatrepparttar 151030 programs are in compliance withrepparttar 151031 Internal Revenue Code §162(m); however, and it is a big HOWEVER, they may not qualify for exemption underrepparttar 151032 one million dollar cap, and therefore would not be deductible for tax purposes. We find it quite a stretch to see how that is inrepparttar 151033 shareholder’s interest, since a non-deductible expense reducesrepparttar 151034 company’s profitability.

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