Friday, September 19, 2008
Executive Compensation
I think if the executive compensation (variable component like bonuses and stock option exercising is spread over long term (around 4 years rather than annual), there may be incentive for these people to think strategically and not gamble with investments. But well..I dont know if free market economy champions agree to such things.
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2 comments:
Good point Vamsi. Don't you think stock based compensation vesting over a 3 year period accomplishes the same objective? Most execs such a comp plan right?
Right Sukumar. I should have made it clear - bonuses also spread over 3 years apart from the ESOP.
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