4 ms·
Correct, it’s effectively the moral hazard problem. Where executives capture the upside (of short term gains in stock) and pass on the risk to future execs/shar
by andreilys 5y ago
Correct, it’s effectively the moral hazard problem. Where executives capture the upside (of short term gains in stock) and pass on the risk to future execs/shareholders.
Very difficult to align long term incentives unfortunately, unless the company is founder led.
- alcover 5y agoYes. Some big old companies have been family-owned for generations. You may be much more intent on keeping brand quality if you envision your grand-children prospering off it.