GE may move its HQ after Connecticut passed state corporate tax increases.

[Zorba]

I used to work for GE Aviation in Cincinnati. They would move their engineering offices every 15 years when their current set of incentives ran out, leaving behind massive empty office buildings. When I left they were building a new set of buildings in West Chester, to pay for the incentives being given to GE, the city passed a 1% local income tax. So GE employees (and everyone else working in West Chester) got to pay directly for GE's tax breaks. They did the same thing with their manufacturing, get huge deals from city/states to open a facility, as soon as the benefits dried up, move it all somewhere else.

GE also employees about 1000 tax attorneys to manipulate the tax laws as much as possible, not to mention all of their lobbies.

[Zorba]

Not only is the State rebating the companies taxes, they are also rebating the EMPLOYEE'S taxes.

Yup, I haven't paid state income tax since I moved back to Oklahoma in 2009. To restart the 5 year period all you have to do is leave the aviation industry for a few months and go back. The law takes up less than 1 sheet of paper, and has no restrictions on using it multiple times. It also does not require you to be a resident of the state of Oklahoma, there are a lot of people that commute from Wichita and pay no income tax.

[TU 'cane]

I know this is about GE, but some previous comments have briefly mentioned OKC and OK diversifying. I thought I'd drop this here. I certainly hope they are successful in their endeavors to keep Oklahoma on the map for aerospace:

Oklahoma Delegation Courts Aerospace Industry At Paris Air Show
Posted: Jun 15, 2015 11:49 AM CST Updated: Jun 15, 2015 12:01 PM CST
Dee Duren, NewsOn6.com

"PARIS, France -

Tulsa Mayor Dewey Bartlett is in Paris alongside Governor Mary Fallin in an effort to bring more aerospace industry to the state.

Both are part of the Oklahoma delegation at the Paris Air Show. The International aerospace show runs from June 15 to 21, bring together leaders in the aviation industry and showcasing the latest technology.

Fallin said the delegation is pitching the Sooner Sate as the "number one place for aerospace." She said the state has a skilled workforce, a great location and one of the lowest costs of doing business in the country."

Oklahoma Delegation Courts Aerospace Industry At Paris Air Show - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |

[Just the facts]

So with those last 3 items, why do we have to offer incentives? We should be attracting companies that expand the taxbase, not mooch off of it.

[Jim Kyle]

So with those last 3 items, why do we have to offer incentives?

Why? Simple: far too many big businesses these days are run by the MBAs who worship nothing but this quarter's bottom line, and have little or no interest in long-term planning. To them, incentives are the be-all and end-all of site selection.

[Just the facts]

Why? Simple: far too many big businesses these days are run by the MBAs who worship nothing but this quarter's bottom line, and have little or no interest in long-term planning. To them, incentives are the be-all and end-all of site selection.

Exactly, so why buy into that non-sense. Is temporary growth worth the debt and inevitable collapse? I would rather just tell them go screw up someone elses finances. My luck they will end up going to Florida anyhow.

[Dubya61]

This may come as a surprise to you, Mug, but this "fiduciary duty" or "responsibility to shareholders" we always hear about? It's a myth. There is no such thing.
...

I call shenanigans.
Every business exists to make money.
Who do they make money for? The owner. If the owner is a generous and kind soul, he will not hog all the money, but that speaks only to the nature of the owner.
Who is the owner of GE? Shareholders.
Whether you call it a fiduciary responsibility or something else, a good business maximizes profits. What they do with those profits ... not my monkeys or circus, unless I'm a shareholder.

[Jersey Boss]

I call shenanigans.
Every business exists to make money.
Who do they make money for? The owner. If the owner is a generous and kind soul, he will not hog all the money, but that speaks only to the nature of the owner.
Who is the owner of GE? Shareholders.
Whether you call it a fiduciary responsibility or something else, a good business maximizes profits. What they do with those profits ... not my monkeys or circus, unless I'm a shareholder.

In theory that is true, just like in theory Senators and Congressmen/women represent the voters and not the paid lobbyists that take them on junkets, concerts, golf outings, etc.


General Electric Lets a Little Democracy into its Boardroom | Center for Effective Government
Shareholders, in theory, own and control a corporation, but this control has always been limited because American corporations have no real elections for their boards. Candidates for directors are put forth by the board itself, and shareholders are ritualistically presented with a slate of directors equal to the number of seats to be filled. They can vote “no” for any candidate, but given there are only as many candidates as there are seats on the board, even a candidate failing to win a majority of votes still is placed on the board.

Over the last decade, a growing number of institutional investors have pressed to change the way directors are elected. They asked the Securities and Exchange Commission (SEC) to adopt new measures of what was called “proxy access” – the right of shareholders with a large enough stake in the company to nominate directors directly to the proxy ballot.

In August 2010, the SEC adopted such a measure, allowing shareholders or groups of shareholders owning three percent of a company’s stock continuously for more than three years to nominate alternative directors for shareholders to consider when they vote.

The move angered the nation’s CEOs. The Business Roundtable, a powerful lobbying organization representing prominent CEOs, and the U.S. Chamber of Commerce, the nation’s largest business lobby, sued the SEC to block the measure. They won, and the measure was struck down in 2011.
GE entered the fray last fall, when one of its shareholders, Kevin Mahar, introduced a shareholder proposal asking the company to broaden the role of shareholders by adopting proxy access.

Under SEC rules, any shareholder who has owned $2,000 worth of stock for more than one year has the right to introduce a proposal asking the company to report on a specific business practice or to change some policy. The SEC considers these votes advisory, not binding, and as such, even when resolutions receive a majority of shareholder’s votes, companies are not legally obligated to follow shareholder direction on issues like disclosing their political contributions or reporting on the effects of climate change.

So unless you have at least 2, 000 worth of stock, held for at least a year, you dear shareholder,"owner", have nothing. Even then the vote or wishes is not binding.

[Dubya61]

In theory that is true, just like in theory Senators and Congressmen/women represent the voters and not the paid lobbyists that take them on junkets, concerts, golf outings, etc.


General Electric Lets a Little Democracy into its Boardroom | Center for Effective Government
Shareholders, in theory, own and control a corporation, but this control has always been limited because American corporations have no real elections for their boards. Candidates for directors are put forth by the board itself, and shareholders are ritualistically presented with a slate of directors equal to the number of seats to be filled. They can vote “no” for any candidate, but given there are only as many candidates as there are seats on the board, even a candidate failing to win a majority of votes still is placed on the board.

Over the last decade, a growing number of institutional investors have pressed to change the way directors are elected. They asked the Securities and Exchange Commission (SEC) to adopt new measures of what was called “proxy access” – the right of shareholders with a large enough stake in the company to nominate directors directly to the proxy ballot.

In August 2010, the SEC adopted such a measure, allowing shareholders or groups of shareholders owning three percent of a company’s stock continuously for more than three years to nominate alternative directors for shareholders to consider when they vote.

The move angered the nation’s CEOs. The Business Roundtable, a powerful lobbying organization representing prominent CEOs, and the U.S. Chamber of Commerce, the nation’s largest business lobby, sued the SEC to block the measure. They won, and the measure was struck down in 2011.
GE entered the fray last fall, when one of its shareholders, Kevin Mahar, introduced a shareholder proposal asking the company to broaden the role of shareholders by adopting proxy access.

Under SEC rules, any shareholder who has owned $2,000 worth of stock for more than one year has the right to introduce a proposal asking the company to report on a specific business practice or to change some policy. The SEC considers these votes advisory, not binding, and as such, even when resolutions receive a majority of shareholder’s votes, companies are not legally obligated to follow shareholder direction on issues like disclosing their political contributions or reporting on the effects of climate change.

So unless you have at least 2, 000 worth of stock, held for at least a year, you dear shareholder,"owner", have nothing. Even then the vote or wishes is not binding.

Theory or no, it's still true in practice, as well. If you have 1 owner or more (shareholders), your job as a business entity is to make money (for that / those owners) and make it big.

[Just the facts]

Let me ask for those who think a corporation's primary objective is making money? Who/what should be making money - the corporation or the shareholders? Should it be profit at all costs?

[zookeeper]

Let me ask for those who think a corporation's primary objective is making money? Who/what should be making money - the corporation or the shareholders? Should it be profit at all costs?

Bingo. All fiduciary responsibility is to the corporation NOT to the stockholders as many today would have you believe. And no, they're not the same thing.

The corporation is legally viable under a corporate charter issued by the states. This is a key. Many haven't yet grasped the connection.

[OU Adonis]

When/who was the last major corporate HQ that OKC landed?

[Bellaboo]

When/who was the last major corporate HQ that OKC landed?

Even though it was a subsidiary of OG&E, I'd say Enable Midstream. It could have gone with Centerpoint to Houston.

[OU Adonis]

Even though it was a subsidiary of OG&E, I'd say Enable Midstream. It could have gone with Centerpoint to Houston.

True.. although they had some sort of ties here. How about I rephrase it... What was the last major HQ relocation that had no previous ties to OKC/Oklahoma?

[HOT ROD]

SandRidge <- Raita Energy

[gopokes88]

Vote Rand Paul for tax fairness.

GOP?s Rand Paul Calls For 14.5% Flat Tax - WSJ

[Bellaboo]

True.. although they had some sort of ties here. How about I rephrase it... What was the last major HQ relocation that had no previous ties to OKC/Oklahoma?

Not really an HQ relocation, but the largest single influx of high paying jobs would have to be Boeing. Between 900 and 1,100 in a 4 year span.

[Just the facts]

SandRidge <- Raita Energy

I was going to say that, but Tom Ward bought them with the specific intent to relocate them to OKC. It's not like the City went out and recruited them.

Didn't some company move here from Tulsa about 5 years ago?

[Bellaboo]

I was going to say that, but Tom Ward bought them with the specific intent to relocate them to OKC. It's not like the City went out and recruited them.

Didn't some company move here from Tulsa about 5 years ago?

Blue Knight Midstream, and Flogistix (sp?) moved here from Texas 3 years ago.

How about General Electric Global Research... lol

[Just the facts]

Not sure about Blue Knight, but Flogistics was a Tom Ward type deal where the CEO already lived in OKC.

[ou48A]

Vote Rand Paul for tax fairness.

GOP?s Rand Paul Calls For 14.5% Flat Tax - WSJ

With a phase in time period I like that idea a lot …. It would simplify the tax codes and make our economy more efficient…. A lot of tax attorneys and accountants would need to find other work.

[Jersey Boss]

Very Interesting that folks are having a hard time on this one and even more telling is the companies mentioned are not on the radar screen of most people.

[Just the facts]

I would add Continental Oil, but Hamm already lived in OKC as well.

If we want to make the game even harder, what was thr last non-O&G company that is/was publicly traded?

[Bellaboo]

I would add Continental Oil, but Hamm already lived in OKC as well.

If we want to make the game even harder, what was thr last non-O&G company that is/was publicly traded?

He lived here but commuted to Enid for a year or so until CLR moved. I'm not so sure that his marital status didn't contribute to his move to NH. ?

[Dubya61]

Bingo. All fiduciary responsibility is to the corporation NOT to the stockholders as many today would have you believe. And no, they're not the same thing.

The corporation is legally viable under a corporate charter issued by the states. This is a key. Many haven't yet grasped the connection.

OK, but why is the corporation making money? I agree that in today's environment, the shareholder(s) is a sort of absentee owner, but the tail wags the dog pretty damned hard, sometimes. Look at Carl Icahn and tell me he has no say in how the corporation works.