[vl]

Welch also invented corporate raiding by management. When he started, employees owned 0, when finished 31 percent of GE, with majority of 31 owned by management. This effectively transferred 1/3 of value from shareholders to management. Since then same thing happens with most other corporations.

[technotony]

But at the same time enterprize value increased 40x. Paying 1/3 of the gains to management seems fair given the performance.

[vl]

But it's more complex than this. Would it increase as much without paying 1/3? Were short-term gains optimized at the expense of sustainable business?

[cma]

Didn't they start doing leveraged finacial product investments and stuff since it was heads their massive stock option incentives pay off, tails no big loss for them.

[gowld]

Was that 31percent purchased or seized?

[vl]

Granted as stock options or restricted stock units.

[TuringNYC]

Granted by dilution