Does backdating explain
But private equity typically pays its top executives very well, even though public shareholders are not a factor.Furthermore, the rate of productivity growth in the United States has been the envy of the world. The growth in executive compensation reflects how much more is at stake in American companies.Cowen summarizes the state of play on these important economic questions as follows: In any case, the debate over chief executives’ salaries has moved a step forward.Yes, there are numerous examples of corporate malfeasance.In 1991–92 he served in the Royal Norwegian Navy and Norwegian Coast Guard.In 2007, he was listed as one of the Time 100, with the article on his contributions being written by former New York Governor and New York State Attorney General Eliot Spitzer.Rather, we get mostly claims that backdating is a function of widespread fraud or compensation committee naiveity.
It is difficult for me to believe that hundreds of companies do not understand that options are not “free.” I do not find this explanation persuasive.But one would think that there would be universal agreement that getting our hands dirty and thinking hard about how backdating imposes costs on shareholders (if it does), what those costs are, the consequences of the expensing rules, and most importantly, why so many firms apparently adopted the practice as an element of their compensation packages, would be a good thing. Late last week President Obama signed an Executive Order that nominally claims to direct…Perhaps there might even be agreement that we should think do this, and maybe even have tentative answers, It appears that White House’s zeal for progressive-era legal theory has … Is not the real question which policies and institutions have led to this explosion of value?At the end of the day, and sadly, public perception about backdating may be more important than actually understanding the practice.