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I highly doubt that compensation for executives is based on the value of a single share, not taking into account outstanding shares. That’s a blindly obvious lo
by Negitivefrags 7y ago
I highly doubt that compensation for executives is based on the value of a single share, not taking into account outstanding shares. That’s a blindly obvious loophole.
Their compensation would be based on market cap, which you can’t increase by doing a buyback.
- rlucas 7y agoThat "blindingly obvious loophole" is basically the standard. These compensation deals are very often based on earnings per share or value per share. And you can increase it. The link below is from the Conference Board, which is about as rock-ribbed big business friendly capital establishment types as they come. Even they caution about executive trickery here. https://www.conference-board.org/blog/postdetail.cfm?post=6888 https://www.conference-board.org/blog/postdetail.cfm?post=68...