Any thoughts on my first original stock idea?

[almostbusto]

[ QUOTE ]
A $30M company where the top dude was paid $1M last year? And his father(?) was paid $200K. And they're all also CEO's and CFO's and whatnot of a another teeny tiny company, TUX, with a market cap of $6M which is paying father and son $200k each. This is obviously some family and friends operation. Why should they work to do something with the >$30M in cash they have when they can just sit and do nothing at all and collect $1M/yr in paychecks? They get all of the money eventually this way as the share value goes to 0. If they sold the company or distributed the cash as a dividend, they'd only get part of it.

I'm being cynical, and management may be go-getters intent on building a company so an investment may indeed generate nice returns. But I think I'll let y'all venture into this and I will watch from the sidelines.

[/ QUOTE ]i think thats being overly cynical. the chances of them getting away with something like that are pretty much zero, based on my understanding of the law. which they are aware of. so what would a rational actor do in a situation like that? i would suggest that actor would maximize benefits by maximizing the companies benefits, more or less, given that he owns a 50%+ stake in the company.