4 ms·
> What are the [Executive's] Incentives I think it's very important to keep your frame. With passive investors who simply are not privy to any of the decisions
by clarkevans 8y ago
> What are the [Executive's] Incentives
I think it's very important to keep your
frame. With passive investors who simply
are not privy to any of the decisions and
middle management who are often powerless,
our question should be how we make executives
responsible for the actions they oversee.
Especially when those actions are discovered
to be harmful years after they have left.
Perhaps one option is that all executive stock
options and compensation over a particular amount
should be held in trust, distributed only
incrementally, so that their "privatization
of profits" can be recovered in the case of
material damages done by the company while
it is under their direction & control.
The other thing we could do is give standing
to middle management so they can sue executives
from this trust if they can show executives were
negligent. Incentivize middle management to have
a financial stake in preventing unsafe behavior.