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Well that is your opinion. I've known a few CEO's and MD's in my time, I've seen good ones and I've seen **** ones, more off the later unfortunately.That is utter BS, the CEO makes sure **** gets done.
And to your point about paying money back, well you answered your own question, as quite a fair amount of the bonus is usually in stocks, if they fail the stock price will fall.
The thing with stock options is, you take them up when stocks are up. You don't sell when stocks are down. So no, a temporary drop in share price because of a bad yearly result does not result in a loss of income for a CEO. The other problem with stock options is that CEO's will favour higher dividends instead of re-investing into the company or staff because all those shares means more dividends for themselves.
Just look at Musk and Tesla, he doesn't earn a salary, he just gets stock options when the company hits certain targets. Billions of dollars worth and because he's not taken them all up yet and or sold them he's not paid tax on those options/shares.