2 ms·
"The billions that Boeing spent on buybacks are billions that Boeing didn't spend on airworthiness" and the article suggests that CEOs only do dumb buybacks be
by fxtentacle 2y ago
"The billions that Boeing spent on buybacks are billions that Boeing didn't spend on airworthiness"
and the article suggests that CEOs only do dumb buybacks because they personally profit from the raising stock price.
- triceratops 2y agoCompensating CEOs with stock grants has the side-effect that they aren't motivated to look too far beyond their time in the role. Short-term bumps in the stock price are good for them. Maybe locking up a portion of their stock grants for longer - say 5 years after they leave - is the solution. I don't know how many CEOs would sign up for that deal though. It means part of their compensation is effectively hostage to the next CEO.