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Author: steve203 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 454837  
Subject: Re: Poll: Ratepayers vs Shareholders Date: 9/8/2013 12:29 AM
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I fail to understand why shareholders are sacrosanct.

It's an excuse. Recall BP's response when informed that it was going to be compelled to pay a *lot* for damage caused in the Gulf: the company whined that it would have to cut it's dividend and "hurt all those poor widows and orphans that depend on that dividend".

A divy cut would hurt the stock price, which would hurt the CEO's bonus. Stick the rate payers with the bill, and revenue goes up, profits go up and the honcho's pay goes up.

Here's a tidbit about "cost plus" pricing: actor Tony Dow's father was an engineer at Lockheed. At that time, aircraft were built by constructing a scaffold around the section of the plane that was to be built. When that section of the plane was done, the scaffold was torn down and a new scaffold built around the next section of the plane.

All this building and tearing down of scaffolds was very expensive and time consuming, so Tony's dad designed a portable scaffold that could be easily moved around the plane as needed without being torn down. Lockheed didn't want any part of it, because it reduced cost, which would reduce their profit, because their government contracts were all "cost plus".

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