Just thought of a rather genius solution to rising executive pay disconnected from performance or results. Best part is that it doesnt need to cap CEO pay, though it does require a bit of a legal framework, so it doesnt limit freedom or a companys ability to attract top talent. My solution: pay all executives (or those with supervisory responsibilities) in the top quartile of THAT corporations compensation range entirely in that corporations stock, at current market value (from previous days closing price on the NYSE), quarterly. They can do whatever they want with the stock once its in their accounts or at their brokerage, but they cannot be compensated (with bonuses, salary, or any goods/services above nominal value) by any other means. If theyre to get a golden parachute, fine--they can be granted severance pay that is paid in stock that is valued at the closing price on the last day they worked in their office. Simple solution, too effective to ever be implemented.
Posted on: Sun, 16 Mar 2014 18:17:36 +0000
Trending Topics
© 2015