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Stock price isn’t a great indicator of product quality though. Stock price requires endless growth which is unsustainable.

• bwilliams18 3y ago
  But it is ultimately what will result in a CEO departure.
• maerF0x0 3y ago
  No. Stock price requires higher per share values. One can continuously grow a stock if they reduce the shares outstanding. That being said iirc buy backs have notoriously all gone to executives. Essentially they buy back, and then award themselves options to re-dilute, but cannot readily find a source for that. So maybe incorrect.
  • lotsofpulp 3y ago
    When a business does a stock buyback, the business receives the stock, not any executive(s). The business might pay the executive with stock per the board approved compensation package, but a CEO does not wake up and say “I want to give myself 5M shares so let’s do a 5M share buyback”. A buyback benefits all shareholders equally by reducing supply of the stock and therefore increasing its price.
    • maerF0x0 3y ago
      > the business receives the stock correct. Hence my wording > and then award themselves options to re-dilute It's not that executives receive the bought back stock, but that their stock based compensation plans result in no net decrease in the amount of outstanding shares.