I was delighted that Stephen Hester finally agreed to forego part of his RBS bonus, albeit that it took him some time to do so, and I salute Sir Philip Hampton, the RBS chairman, for providing leadership on this issue. My delight was for two reasons, namely:
1. As readers may have noted, I am an avid believer that private investors will (by harnessing, inter alia, the internet) be able to bring about change which will improve the functioning of the UK's capital markets from the standpoint of being a wealth preserver in real terms and, ideally, a wealth creator. An important element in this process is preventing employees from diverting to themselves remuneration which is excessive in relation to the rewards enjoyed by investors. In this instance, public opinion has done the trick.
2. Many column inches in recent weeks have been devoted to commenting on politicians' threats to introduce regulation to control excessive pay. I am completely against regulation as a means of dealing with this issue (as well as many other issues) because it invariably both adds to the cost of doing business and also suffers from the law of unintended consequences. A far better solution is for investors to behave like long term owners.
By complete contrast, I laud the way in which Software Radio Technology (an emerging Mittelstand company) is setting about communicating with private investors - click here to see the joining instructions for the company's webcast on 1st February. This is a great example of how digital technology can be deployed to both improve and also lower the cost of investor communication.
News on LCF Research Covered Stocks
Lo Q (LON:LOQ) , the company that supplies “virtual queue” management systems for the amusement and water park industries, announced an agreement with Six Flags to install Q-band at another of their water parks. The park is located in California and will become the ninth Six flags water park to begin deploying Lo-Q’s virtual queuing system. Six Flags is the world’s largest regional theme park operator.
The LOQ share price has increased by 81% over the last year.
Lo-Q Plc is currently graded b by LCF Research. To learn more, follow the link.
Surface Transforms (LON:SCE), the Cheshire based supplier of carbon fibre reinforced ceramic brakes and…
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