GREED IS NOT GOOD

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk ManagementGREED IS NOT GOOD!. CIFP Four Educational Streams: Wealth Management  Tax Planning  E

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

GREED IS NOT GOOD!

Presented by Richard G Stone

Founder & President, Stone & Co Limited

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

better word is good

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

In The News Over 15

Years Later …

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

What Went Wrong?

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

disproportionate to corporate results

extreme in the creation of very questionable or unproven business concepts

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

managers exercising stock options that have rewarded short-term thinking

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

financial condition of too many companies

destroying evidence

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

Who Were the Transgressors?

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

rubber-stamping boards of directors

management involved in serious conflicts

of interest

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

market makers, and biased and independent analysts

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

manifestations of the problem than to the systemic conflicts of interest that are at the core of poor governance practices

*Source:

“Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p 229, authors John L Colley, Jr et al.)

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

Result:

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

 Canada is ahead of the U.S.

Canadian Reality:

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

 Not a game of statistics

 Simple due diligence

 Educate your clients that there is a

Due Diligence Process

Solution: Take control!

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

6 Questions to Ask to Ensure Good Corporate

Governance

CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

What is your company’s policy on the responsibilities you have toward

unitholders?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

What is your company’s policy on their role as representing unitholders with respect to the voting of shares, and other shareholder issues?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

Do you publicly disclose how your company has voted their shares in all holdings? If so, where do I find this information? If not, Why?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

What is your company’s viewpoint toward executive and management option plans?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

What initiatives is your company taking to deal with the shareholder issues we face?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

In general, please explain what you see as the issues facing your

unitholders and shareholders today? Can you define your policies and

attitudes toward these issues?



CIFP Four Educational Streams: Wealth Management  Tax Planning  Estate Planning  Risk Management

“…a man with a briefcase can steal more money than any

man with a gun …”

- Don Henley