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Old 01-01-08, 09:06 AM
Novice Investing Novice Investing is offline
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Join Date: Jan 2008
Posts: 84
The board of director needs to strike a balance between cash compensation and stock compensation. Too much cash compensation will not motivate the CEO to drive up earnings, which consequently will drive the stock price. (Good for us, investors). Too much stock compensation and the CEO may try to manipulate short term results in order to pump up the stock price. Since most average CEO do not stay in the same company for long, this may not be good for investors.
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