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by TheAdamAndChe 1908 days ago
If stock price and valuation isn't a reward, then why is executive compensation often tied to stock price?

> how do you know what the "fair share" is that doesn't harm the capacity of the company to continue to provide value?

I don't know, but it should pass a smell test at least. I can tell you that a company that was recently net negative only because of reinvestment using those negative years to not pay taxes during positive years doesn't pass the smell test.

1 comments

>If stock price and valuation isn't a reward, then why is executive compensation often tied to stock price?

It is a good question but a different point to the current discussion. Which is Tax Code.