Finding Management that puts Shareholders First

The hardest thing is to find management that actually objectively behaves in shareholders’ interest as opposed to their own long-term interest. It’s not what they say, it’s what they actually do. Take SPX Corp., the industrial company that came out with this elaborate description on how they were focused on EVA [Economic Value Added] … until they didn’t hit their targets and then the board changed the criteria and gave management their bonuses anyway, saying “it wasn’t their fault, the economy was bad, why should they get penalized for that?” So you’re looking for managements and boards that actually act in shareholders’ interest, and there aren’t many of them.