4 ms·

Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term str

Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term strategies rather than pump and dump.

nine_zeros 3y ago
That would certainly be one way of attaining long term vision. But who will enforce this requirement? Only pension funds and other large shareholders have any (and often impractical) leverage over the board C-suite. Wall-street shareholders demand faster growth until they themselves can exit out. They don't care about the business or the services or the employees. They want a high growth return, year-over-year until their own investment carry continues to exist.
- toomuchtodo 3y ago
  Stock buybacks used to be illegal. Lots of ways to use policy to encourage long-term shareholder value if boards and corporate bylaws won’t.
  - nine_zeros 3y ago
    Stock buyback is equivalent to paying a dividend. If stock buybacks are prevented, companies will continue to layoff and pay out dividends. It doesn't solve the root cause that employees don't have a seat at the decision-making table. At a minimum, if corporation laws were modified such that every laid off employee must be issued 1 year worth of shares as a golden parachute, the incentives will all get aligned very quickly and employees will not be abruptly thrown away.
    - mrcode007 3y ago
      It is not the same as a dividend. Not even close. By definition, one returns cash, the other doesn’t. The stock buyback also prevents market price discovery because of an artificial price floor. The buyback is also a subject to buyback tax, transaction fee at the broker, and the benefits of the buyback are not captured by the long term holders, only by short term holders, e.g. insiders, who often sell into the buyback guaranteeing a price floor and effectively an execution price.
  - s1artibartfast 3y ago
    Stock BuyBacks have nothing to do with long or short-term vision.
    - toomuchtodo 3y ago
      The previous restriction on them was an example of controlling capital markets with statute. That was the point. These are all just words on power and numbers in a database. We can change the rules whenever we collectively choose to.
spacemanspiff01 3y ago
[dead]
kqr2 3y ago
Some companies such as Toyota supposedly have 100 year business plans: http://www.gongol.com/research/economics/100yearplans/ http://www.gongol.com/research/economics/100yearplans/

Executive stock prices should vest at the first of 25 years from the date earned or 10 years after they've left the company. That would encourage long term strategies rather than pump and dump.

nine_zeros 3y ago

That would certainly be one way of attaining long term vision. But who will enforce this requirement? Only pension funds and other large shareholders have any (and often impractical) leverage over the board C-suite. Wall-street shareholders demand faster growth until they themselves can exit out. They don't care about the business or the services or the employees. They want a high growth return, year-over-year until their own investment carry continues to exist.

toomuchtodo 3y ago
Stock buybacks used to be illegal. Lots of ways to use policy to encourage long-term shareholder value if boards and corporate bylaws won’t.
- nine_zeros 3y ago
  Stock buyback is equivalent to paying a dividend. If stock buybacks are prevented, companies will continue to layoff and pay out dividends. It doesn't solve the root cause that employees don't have a seat at the decision-making table. At a minimum, if corporation laws were modified such that every laid off employee must be issued 1 year worth of shares as a golden parachute, the incentives will all get aligned very quickly and employees will not be abruptly thrown away.
  - mrcode007 3y ago
    It is not the same as a dividend. Not even close. By definition, one returns cash, the other doesn’t. The stock buyback also prevents market price discovery because of an artificial price floor. The buyback is also a subject to buyback tax, transaction fee at the broker, and the benefits of the buyback are not captured by the long term holders, only by short term holders, e.g. insiders, who often sell into the buyback guaranteeing a price floor and effectively an execution price.
- s1artibartfast 3y ago
  Stock BuyBacks have nothing to do with long or short-term vision.
  - toomuchtodo 3y ago
    The previous restriction on them was an example of controlling capital markets with statute. That was the point. These are all just words on power and numbers in a database. We can change the rules whenever we collectively choose to.

spacemanspiff01 3y ago

[dead]

kqr2 3y ago

Some companies such as Toyota supposedly have 100 year business plans: http://www.gongol.com/research/economics/100yearplans/ http://www.gongol.com/research/economics/100yearplans/