Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In practice, MyCo’s Directors have interpreted this provision by vowing to never let its stock drop by a Significant Amount. Beyond that, it prioritizes the other goals identified in the Charter. A “Significant Amount” is generally taken to mean a low single digit annualized percentage. What this means is that MyCo aims for its stock price to reliably decline a little every year. Why actually aim for an actual annual stock decline rather than, say, setting it as a floor? Because once shareholder safety and stability is assured, the Board believes its main priority is to protect MYCO users and the MYCO brand. It believes that allowing stock price increases would violate both their first directive of stability and their secondary directives by implicitly favoring shareholders over users and the overall MYCO brand.

Clarifying questions: Does this section mean that shareholders of the A shares are guaranteed a small negative annual real return? And by what mechanism is MYCO able to accomplish this?

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.