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Companies don't act, investors, board members, executives, and employees do; these decisions would only disincentivize executives if they hold un-exercised opti
by nickff 6y ago
Companies don't act, investors, board members, executives, and employees do; these decisions would only disincentivize executives if they hold un-exercised options, or their shares are somehow excluded from the judgement.
- ashtonkem 6y agoI can’t speak to judgements, but executives often hold a lot of shares. The largest individual shareholder of Disney is the CEO, for example.
- nickff 6y agoIf the executives continually hold shares from the time of the 'wrongdoing' to the time of the judgement, and are included in the settlement or decision, the impact on them would be to transfer money from one pocket to another, minus some loss to the lawyers on both sides.
- ashtonkem 6y agoLogically speaking, it makes sense that any executive shareholders should be excluded from such lawsuit payouts. But I have no idea how it actually works.