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Not just CEOs should benefit from equity ownership

Investors suspect that boards are simply adding complexity to already conveniently impenetrable packages.

Andrew Edgecliffe-Johnson
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It was Charlie Munger, Warren Buffett’s partner in quotable business aphorisms, who once quipped: “Show me the incentive and I will show you the outcome.”

So, it is no surprise that, over the decades in which the consensus set in that a chief executive’s main job was to create value for their shareholders, boards began adding ever more stock to CEOs’ compensation packages.

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    Original URL: https://www.afr.com/link/follow-20180101-p58p6c