3 ms·
I don't see anything changing as long as short-term decision-making is incentivized. Executive shares should vest according to some multiple of the average tenu
by jackcosgrove 7y ago
I don't see anything changing as long as short-term decision-making is incentivized. Executive shares should vest according to some multiple of the average tenure of a company in the S&P 500. If the multiple is 1, that means you need to beat the average to own a share of a company you manage. Tying it to the market average calibrates this schedule to the pace of company turnover due to external factors, such as population growth, technological change, etc. I'm not proposing a legal framework beyond requiring that these norms be promulgated and individual companies required to report the terms of share grants to management. Let investors make decisions armed with this information and enforce the norms that way. Maybe some form of this is already normal; I'd be curious to know.