Executive pay: Corporate scandal
Seattle Post-Intelligencer
by staff
01/01/07
This is the way it works for you and me: You buy a stock and hope it goes up. If not, you might cuss a bit, but ultimately you take the loss. Such is life. But this is the way it has worked for some company chief executives: They bought a stock, it went down, so they went back and found a better date. If you think about it, any stock (or more accurately, an option to buy a stock) can be profitable if you manipulate the date of purchase. Such a deal. What's troubling about this year's option scandal is that it began as a 'reform' measure; the idea was to tie executive performance to the price of the stock. That way the interests of shareholders and managers would be aligned. 'At many companies, options morphed into the biggest executive bonanza yet, pouring out cash like a stuck ATM, sorely disappointing those who thought options would moderate executive pay,' The Wall Street Journal said last week...
http://seattlepi.nwsource.com/opinion/297760_corppay1ed.html
Informant: Thomas L. Knapp
by staff
01/01/07
This is the way it works for you and me: You buy a stock and hope it goes up. If not, you might cuss a bit, but ultimately you take the loss. Such is life. But this is the way it has worked for some company chief executives: They bought a stock, it went down, so they went back and found a better date. If you think about it, any stock (or more accurately, an option to buy a stock) can be profitable if you manipulate the date of purchase. Such a deal. What's troubling about this year's option scandal is that it began as a 'reform' measure; the idea was to tie executive performance to the price of the stock. That way the interests of shareholders and managers would be aligned. 'At many companies, options morphed into the biggest executive bonanza yet, pouring out cash like a stuck ATM, sorely disappointing those who thought options would moderate executive pay,' The Wall Street Journal said last week...
http://seattlepi.nwsource.com/opinion/297760_corppay1ed.html
Informant: Thomas L. Knapp
rudkla - 2. Jan, 14:26
