Has anyone ever been involved in a company’s internal discussion on cutting a dividend? I’m wondering if when you made the decision to cut, was the mentality: - cut only enough to keep the lights on for another quarter OR - cut enough to make sure we don’t have to do another cut next quarter
dlpicket Wrote: ------------------------------------------------------- > Has anyone ever been involved in a company’s > internal discussion on cutting a dividend? Seriously doubt it. Any corporate board members on AF? > I’m > wondering if when you made the decision to cut, > was the mentality: > > - cut only enough to keep the lights on for > another quarter > > OR > > - cut enough to make sure we don’t have to do > another cut next quarter
Right here. An even greater shock than the 25yr old hedge fund manager, a 23 year old corporate board member. They were looking for some young blood and wouldn’t accept anyone who had passed the LIII CFA exam. But in all seriousness, I think its reasonable to assume that if they cut, they cut once and deep and reinstate when things get better. Although, I can’t say this will be true for energy trusts which may have been optimistic and not any company is immune from the possibility that the economy forces them to make further cuts…
Ok, even I laughed. Higher up folks in the Treasury department could be involved in the earliest stages of this sort of discussion. Of course the board has a final decision. I’ve been involved in several situations where MNPI was discussed, just not that particular one.