Bet on Microsoft

If I had one thing to say about the current state of business I would say this:
Microsoft is about to do something real big. They are fully focused and hungry.
I been interviewing with quite a few different types of companies, but none like Microsoft. Most big companies don't know their big and aren't aware of the problems in such a state. MS has moved beyond that stage and knows what they are. It took them some time to snap out of it, but they are back. The key of it all is this. Yahoo lost it's engineering power. Oracle lost their engineering power. Google hasn't. That is where the battle front really is, with the technology and not with the businessmen. MS has realized this finally. Visa is set to IPO. I would bet on them also. If you bought Mastercard stock when they IPO'd two years you would have gotten a 5 fold return.

Executive Compensation-How much can a CEO make?

Every company is required to report the compensation structure of their highest ranking employees (Form 8K). This information is public. But basically, the CEO can make an extra 250% of their salary if things go well. The other C's(CFO, CTO, COO) can make around 125 more percent of their's. These critical mass position for the lucrative bonuses starts usually around the Director title at about 130%. See below for the specifics about a high tech company's executive compensation plan.

Our Chief Executive Officer, Chief Financial Officer, the three other most-highly-compensated officers, all other officers, as well as other key employees, are eligible to participate in the Bonus Plan.
Bonuses payable to our CEO and other officers who are subject to Section 16 of the Securities Exchange Act of 1934, as amended (collectively, the "Executive Officers") under the Bonus Plan will be determined by the Compensation Committee.
The target and maximum payouts, both of which are a percentage of base salary, that may be earned by each of our Executive Officers are as follows:
MAXIMUM
POSITION TARGET % PAYOUT %
CEO 100 200
CFO 60 120
SENIOR VICE PRESIDENT 60 120
VICE PRESIDENT 50 100

Under the Bonus Plan, actual payouts to the Executive Officers will be determined by the Compensation Committee based on a formula that takes into account (1) operating income as a percentage of revenue for 2008 (the "Financial Performance Metric") and (2) individual performance (the "Individual Performance Metric"). The Financial Performance Metric will determine the Potential Payout percentage (as specified in the table below) that may be earned by an Executive Officer, and the Individual Performance Metric will then be applied as a multiplier to determine the actual payout. The formula which the Compensation Committee will use to calculate the actual payouts to the Executive Officers (which are subject to the Maximum Payout Percentages specified above) is as follows:
Base Salary * (Target % * Potential Payout % * Individual Performance Metric %) = Actual Payout.
________________________________________
The Financial Performance Metric under the Bonus Plan will be operating income as a percentage of revenue for 2008. Operating income is defined as earnings before income, interest expense, and taxes. The Compensation Committee shall have discretion to exclude from the calculation of the Financial Performance Metric significant, non-recurring items. The Potential Payout Percentage will be calculated based on the following table:
Potential
Operating Income as % of Revenue Payout %
Less than 22 0
22 20
23 30
24 50
25 70
26 90
27 100
28 130
29 160
30 190
31 or higher 200

If the results of the Financial Performance Metric do not appear on the above table, the Potential Payout Percentage shall be calculated on a proportional basis. For example, if 2008 operating income as a percentage of revenue is 25.5%, the Potential Payout Percentage will be 80%.
The Individual Performance Metric will be determined by the Compensation Committee as follows:
• 70% will be based on the individual's performance against specific goals that have been approved by the Board of Directors in the case of the CEO and by the Compensation Committee in the case of other Executive Officers. Individual performance goals may have different weightings.
• 30% will be based on the Compensation Committee's subjective assessment of the overall performance of each Executive Officer.
The Individual Performance Metric may range from 0-125%. In evaluating the performance of the Executive Officers other than the CEO, the Compensation Committee will take into account the CEO's evaluation of whether an individual has met his or her performance goals and the CEO's subjective assessment of overall performance. In evaluating the performance of the CEO, the Compensation Committee may take into account the CEO's self-assessment as well as the assessment of the independent members of the Board of Directors. The Compensation Committee's determination as to whether individual performance goals have been met may be subjective in nature.
Payment of bonuses (if any) will be made in February or early March of 2009. Bonuses normally will be paid in cash in a single lump sum, subject to payroll taxes and tax withholdings.

Automatic Millionaire

In my spare time I also read this lovely morsel of nothing called The Automatic Millionaire. The premise of this book was basically ignorant compounding. Automatic meaning adjust once and never really doing anything afterwards. The premise is that you will a millionaire in 26 years by using automatic banking for savings, principal pre-payment, and investing money that would be normally wasted.

Cashflow Quadrant

I had a chance to read Cashflow Quadrant by the Rich Dad Poor Dad author. This book provides more of an realistic example than his previous title. The concept of this book is categorize investors by the way they earn their money. The book helps you determine if you are an employee, a contractor, a business owner, or an investor. Then the book defines the thought processes and limitations of each group. He then explains why living on the right side of the quadrant as either a business owner or investor is the preferred mode. After getting everyone in line with the proper thought processes he then explain how to make money as a B or I.

Coolest thing at CES

The big consumer tech show is currently taking place.
My personal award goes to Microvision (Click Here). They have a hand held projector.
It is size of an old school IPOD and projects at dvd level clarity.
I pick them because they are one my customers. I made a trip to Seattle last year to visit with them and get an update as to how they were doing.

It's great to see that they made it and it allows my former employer to get into a high volume consumer based product.

Think and Grow Rich

Great Read
"
This book was different in terms of style. It's basically about 13 concepts of self preparation that should lead to financial success. The best way to describe it as a cross between and self help/motivational book combined with personal finance.
"

House approves AMT modification

Thank God!
The AMT in its previous state was jacked up. I hope they got it straightened out.
I can't tell by reading this if I am cool, but hopefully my accountant will have better results for me in '08.

http://news.yahoo.com/s/nm/20071219/pl_nm/taxes_congress_amt_dc_6