This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
NEW YORK ( TheStreet) -- Shareholders are a pain to some CEOs. Always asking for profits and returns for their stake in the company.
Some CEOs resent that. They want time -- usually two years -- to show what geniuses they have really been for the last five years despite their seemingly dismal results.
Patience, they plead.
Forbes magazine summed up the attitude well earlier this year when one of its columnists, Keld Jensen, said if he ever became a CEO, he would send out the following letter:
"I don't care what the share value will be for the next two years. We might not make a profit during this period. But we are going to focus all our resources on product research and development with the goal to create the best product the world has ever seen. We're here to change the world!"
I'm sure Jensen is a very nice person and he probably likes puppy dogs. But if I ever see his name on the masthead of a company I happen to own -- however small my piece -- I am going to sell straight away.
As a shareholder, the only world I want a manager to change is mine -- the owner.
If a CEO wants to work in an environment where he can do anything he wants and no one will notice for two years, I suggest he get a job running the Department of Energy.
Until then, I like companies with CEOs who remember who runs the company and who owns it and how never the twain shall meet.
Google(GOOG) is one place with a lot of folks who scorn the 'let's make money for the shareholders' idea. The share price shows it. Same with
Wal-Mart(WMT): It used to be on a mission to charge low prices to create high profits. Then, six years ago, someone decided they needed to start squeezing the carbon out of Wal-Mart's supply chain. They also squeezed out profits.
Ocwen Financial (OCN - Get Report), you won't find any executives talking such silly stuff. The share price shows it, too. So much so, OCN is today the #1 rated stock in my Best Stocks Now app.
I have owned and talked about Ocwen many times over the last several years. Ocwen provides residential and commercial mortgage loans servicing as well as asset management services. OCN has been growing its earnings over the last five years by 35% per year.