>> Could the investment cuts actually be efficient? Perhaps stock price concerns are motivating, because they induce the CEO to make tough decisions, such as c

>> Could the investment cuts actually be efficient? Perhaps stock price concerns are motivating, because they induce the CEO to make tough decisions, such as cutting wasteful investment. If so, we would expect the CEO to improve efficiency in other ways as well, such as increasing sales growth or cutting other expenses. And we find no evidence of that. I imagine looking for ways to increase sales growth and cut costs is something a good CEO does on a regular basis, so maybe there's not much low hanging fruit in that respect. I honestly don't see an issue with the explanation that CEOs are simply more motivated to cut wasteful investment prior to their equity vesting.