The Fundamental Problem With Stock-Based Compensation

Topics:
Incentives and Compensation
Tags:
Benefits,
Compensation,
Finance,
Human Resources,
Investment,
Stock
Source:
University of Toronto

FREE Registration is required

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.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 54KB | Date: Jan 2003 | Pages: 4


advertisement
  • Click Here
  • Click Here
  • Click Here

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).