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executives should be compensated for the performance of the company in the future, not the current quarter or year. this is the board's fault for failing to set
by a-dub 4y ago
executives should be compensated for the performance of the company in the future, not the current quarter or year. this is the board's fault for failing to set effective incentives.
- lupire 4y agoDid the board members pay the CEO with their own money? Or some bag holders? Will the board return their board fees?
- gruez 4y agoIsn't that what a vesting period is supposed to enforce?
- a-dub 4y agoyeah it needs to be stretched more. people talk about ESG... imagine what the world would look like if energy company executives were compensated based on the health of the company (and by proxy the health of the economy) ten years in the future... also maybe more tax rules along the lines of long/short cap gains that reduce the short term time value of money.
- gruez 4y ago>people talk about ESG What you described is supposed to be part of the "G" in "ESG".
- guntars 4y agoExactly, there should be a multi-year lockout period where the CEOs cannot sell their stock. If the potential hires don't like it, well, cry me a river. Plenty of people would still take the job, especially if they are interested in building a long-term company.
- Phlarp 4y agoIf the CEO picks the board, and packs it full of his other CEO friends, who all have him sit on their boards too, and everyone rubber stamps each others compensation packages; isn't this circular blame game awfully beneficial to all of the CEOs at the expense of all the non-CEOs?