The Obama - Clinton Disaster Message Board

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Politics : The Obama - Clinton Disaster

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To: DuckTapeSunroof who wrote (9706)	3/20/2009 4:27:42 PM
From: HPilot	Read Replies (1) of 103300

Nobody in his right mind would accept an incentive plan that offers common stock in a failing company. The executives who are hired to do turn around want cash. Don't want to pay cash, then hire someone stupid enough to take worthless stock. Of course they may not be smart enough to turn the company around either. I suppose you could pay some bonus with common stock as an incentive to do well, if the company does then the stock will no longer be worthless, but when a company is in really bad shape such as AIG these guys will want the bonus to be in mostly cash.

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