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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: James Strauss who wrote (12770)9/23/2003 8:00:18 PM
From: WhatsUpWithThat  Read Replies (1) of 13094
 
For eg, saw a note today that a new CEO had a 9.2mm loan to buy 5% of the OS stock of the company. The loan would be forgiven if the company were sold for > 20 (about 100% up from where it was) or traded over 30 for a specific time period. Problem with that is, isn't that CEO now biased to find reasons not to take a 17 or 18 buyout even if in fact it's in the best interests of the company? 9.2mm is a big temptation...

Exec compensation is v tricky; hard to design something that can't be manipulated.
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