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Until executive compensation is tied to long term performance this won't happen. They are free to institute policies that will cripple or kill a company and th
by cptskippy 3y ago
Until executive compensation is tied to long term performance this won't happen. They are free to institute policies that will cripple or kill a company and then jump ship and find greener pastures.
- FredPret 3y agoI wonder how this could be made to work. Maybe huge stock grants that vest over a very long period. And maybe stock owners shouldn’t hire non-engineers to run their aircraft firm.
- cptskippy 3y ago> And maybe stock owners shouldn’t hire non-engineers to run their aircraft firm. Stock owners are part of the problem. Stock is traded regularly and there's nothing forcing the owner of a stock to remain the owner. Stock owners expect short term growth and quarterly returns, this motivates them to hire executives who will deliver. As soon as the company shows any signs of weakness they can either break it up or cash out and abandon it. * And the problem has been exacerbated by the Stock Market and the ease and speed with which stocks can be bought and sold.
- FredPret 3y agoStock owners are responsible for everything that happen to their company. The buck stops with the owners. But short-termers usually end up transferring their capital to long-termers. I bet the majority of investors are short-termers, but the majority of the capital is in long-term hands.
- dreamcompiler 3y agoNot just compensation. Prison time needs to be on the table. I used to work for a company where my vice president could have gone to prison if I screwed up. It definitely focuses the mind.