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That’s why you clawback the equity as well
by jonathankoren 4y ago
That’s why you clawback the equity as well
- dahfizz 4y agoWhy? Because the CEO did his job and made the stock price go up?
- Kranar 4y agoThat would be counterproductive. The fact he made these measures is what made the stock price go up. The goal isn't to just punish someone for the sake of punishing them, the goal is to improve the value of the company, which the CEO just did by taking these steps.
- gwbrooks 4y ago"You" who? He's the largest shareholder both by share count and, even more so, via his super-voting shares. As another commenter noted, the layoffs made shareholders money. Assuming the board is largely made up of equity holders, a clawback would punish exactly the sort of behavior and performance they want. Equity confers different responsibilities, rights and, yes, paydays than labor. Acting like every hit the latter takes should somehow mean a haircut to the former ignores that.