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So... They use stock price as an indicator of performance, and stock price goes up when options are awarded to executives. Brillant deduction. Why don't they
by greyfade 15y ago
So... They use stock price as an indicator of performance, and stock price goes up when options are awarded to executives.
Brillant deduction.
Why don't they look at other factors like production volume or quality, or at indicators like profit-to-cost or overhead, or at long-term markers like workforce and pay growth? After all, these factors affect the economy. Stock price only indicates investor confidence.
... Or is this study meant to benefit only investors and not the workers?
- wycats 15y agoFurther, they tested executive only and worker only, but not executive+worker. It's certainly possible that worker stock options result in higher stock prices than executive alone, even if worker-only does not increase stock prices.
- yuhong 15y agoI have been saying that stock price based compensation is fundamentally flawed for a while now.
- pyre 15y agoSo... you were doing 'before it was cool' then?
- marshray 15y agoWhy do I get the feeling that the people who designed this study are/aspire to be executive compensation consultants?