SIBORAP includes these ten specific sections: (1) Product Transparency, (2) Regulation and Education, (3) Protection from Speculators (4) Control of Hedging Funds, (5) Brokerage Account Statements, (6) Pension Account Investment, (7 ) Executive Compensation, (8) Corporate Financial Statements, (9) Taxation on Investments and Retirement Income, and (10) Control of Transactional Greed and Fear.
Part Seven: Executive Compensation
Every dollar paid to company executives, directors, and employees (of any kind) that exceeds two million dollars will equate to an extra dividend of ten cents per share to all shareholders and a 10% annual bonus payout to all employees.
All golden parachutes, separate “non-qualified” retirement plans, stock options and deferred compensation plans, and others that do not benefit all employees and shareholders will be canceled over a three to five year period. Each employee who receives compensation of more than $250,000 must purchase (and retain during his tenure with the company plus 3 years) 10 shares of common stock for every $1,000 of his highest career compensation — retroactively three years.
Under SIBORAP, any company that reports earnings annually, or that pays performance-based bonuses to any employee, must first pay its shareholders a “bonus” dividend of not less than 25% of the proposed profit and bonus.
Part Eight: Company Financial Statements.
Investors have the right to have confidence in the figures presented in the company’s financial statements. SIBORAP mandates that all publicly traded companies employ independent audit firms to: translate company finances into simple documents that non-accountants can understand.
These auditors will be rotated between similar companies and industries, with at least three years between appearances at one company. Their compensation will be a flat rate plus rewards for identifying inaccuracies, inappropriate practices and outright fraud. The executive in the chain of command from which the problem is discovered will be responsible for the fees paid to the auditor.
Auditors will rank the company’s financial status based on data on cash flow, debt to equity ratio, operating profitability, industry trends, and other fundamental value indicators.
Section Nine: Tax Considerations.
The current tax code encourages, even dictates, investment mistakes, and creates a greater burden on all levels of government than is necessary. Investors have the right to formulate their investment and retirement plans without having to worry about changing tax code requirements.
Ironically, the current structure of Social Security does more harm than good to both the economic and pension benefits packages. SIBORAP allows most employees to opt out of Social Security in favor of making mandatory (smaller) contributions to a fully funded and guaranteed retirement benefit plan.
Employers will be relieved of this burden of employee benefits, but will be required to use their savings to: add jobs, reduce prices, increase shareholder dividends, or increase employee health benefits. Employees will have more money to spend, and thousands of new jobs will be created within the industry’s existing infrastructure — not to mention careers in corporate oversight.
As implied above, SIBORAP prohibits the imposition of taxes (by any government) on: (1) any form of retirement income received from employee benefit plans, and fixed-annuity-funded Social Security benefits, and (2) any form of investment income , foreign or domestic, accepted by each entity that meets SIBORAP.
SIBORAP strengthens the right of investors in particular, and citizens of the United States in general, to keep what they have earned, created, and inherited during their lifetime, and to bequeath their property to their heirs without being burdened by any form of taxation at any level. All inheritance taxes are illegal, retroactive twenty years.
Part Ten: Transactional Control of Fear and Greed.
Investors have the right to be emotional, irrational, fickle, stubborn, confused, fearful, inexperienced, backwards-looking and greedy. There’s nothing the wisest and most caring professional can say or do that can prevent the mistake that many of us look back on with frowns and shakes of our heads.
SIBORAP will provide investors with better information, introduce rules that will help them benefit from proven asset allocation and diversification techniques, and impose controls on cold-blooded speculators and bloodthirsty tax collectors. But it can, wants, and shouldn’t be legislated from the investment formula.
In reality, financial institutions are not required to emphasize long-term investment thinking or encourage cyclical investment behavior. But the information is available and experienced wisdom is out there to read. SIBORAP will help lazy investors in their pursuit of wealth, but pulling the right decision lever is the sole responsibility of every investor/voter.
Regarding the global investment environment that should spawn SIBORAP — that another value investor, the man from Omaha, said quite clearly a few days ago in the New York Times: “Be afraid when others are greedy, and greedy when others are afraid.”
Help install SIBORAP in your future—choose!