| There's an idea: to align the interests of shareholders and employees, and make sure that employees participate in both the upside and downside (just as non-employee shareholders do), issue mandatory stock options to employees. That is, employees who get these options, are required to buy the stock, within a specified time period, at a specified price. That should give employees the incentive to make sure the stock price goes up long-term, so they aren't forced to buy stock at above-market prices. Of course, management would get a lot more of these mandatory options, than other employees. CEOs who wanted to show their faith in the company, could get paid entirely in these options. I think it's fair, that if someone is the CEO of a company for 10 years, and the stock doesn't go up at all in that time, he should pay for his incompetence. And if the company goes bankrupt, the management team should end up penniless. |
