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This is an interesting point of view, but the article you linked to misses a fundamental point of the "golden parachute" offered to CEO's: if a leading executiv
by karamazov 15y ago
This is an interesting point of view, but the article you linked to misses a fundamental point of the "golden parachute" offered to CEO's: if a leading executive messes up, you want to incentivize them to come forward, not to cover up their mistake for fear of losing their jobs.
Is a golden parachute ideal for this? Perhaps not, as it does introduce some strange incentives overall; but I'm not aware of anything better.
- beambot 15y agoI have no idea how golden parachutes relate to a discussion of dividends vs. stock buybacks. Enlighten me?
- karamazov 15y agoParent's article discusses why stock buybacks damage shareholder value, by referencing the ability of executives to generate shares and sell them on the open market, and thereby dilute existing owners without their consent. (Note that I'm summarizing the argument, not agreeing with it.)