The Fundamental Problem With Stock-Based Compensation
- Topics:
- Incentives and Compensation
- Tags:
- Benefits,
- Compensation,
- Finance,
- Human Resources,
- Investment,
- Stock
- Source:
- University of Toronto
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Overview: IT is never easy to face the reality that something one hold near and dear to one's heart is just plain wrong. It happened to with respect to stock-based compensation - whether stock options, restricted stock, shadow stock or any other form of incentive compensation based on the publicly-traded stock of the manager's firm. The dominant proposition is that stock based compensation of management creates a harmonious alignment of their interests with the interests of shareholders. The reigning orthodoxy in the business world - as well as the realms of business academia and compensation consulting, is that with stock-based compensation, managers will manage in a fashion that is most beneficial to shareholders generally.
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Format: PDF | Size: 54KB | Date: Jan 2003 | Pages: 4




