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You are correct it needs to happen and it is pretty simple. Just ban the C-suite, VPs and BoD from being compensated in stock. Now the only way to keep the grav
by snarf21 6y ago
You are correct it needs to happen and it is pretty simple. Just ban the C-suite, VPs and BoD from being compensated in stock. Now the only way to keep the gravy train running is to build a solid company and not spend all quarter jerking the numbers around to make the disclosures look good.
That being said, it will never happen.
- lotsofpulp 6y agoHow does that work? If you pay them in cash, then there is an incentive to juice the cash flow in the short term at the expense of long term. Stock that vests at various periods over future decades would be more long term oriented.
- rightbyte 6y agoMaybe they should be compensated as most workers with cash for the value they provide? And rate them subjectecly instead of with metrics.
- lotsofpulp 6y agoIf that were possible, it would already be happening. Determining the subjective value (or even objective) value one provides is a pretty much impossible exercise.
- hangonhn 6y agoThat was exactly how it was before. The whole equity compensation was the answer to the problem of CEOs that never grew the company. That was why all the leveraged buyouts happened in the 80s and 90s. They didn’t want CEOs who just stayed around collecting a fat paycheck so instead they gave them equity to compel them to grow the company. Rarely is there a single solution that completely solves a problem for good. Solutions often create problems of their own. People have to decide what problems they would rather have.