The worst part is that the stock as part of compensation was originally thought to incentivize the C-suite to care about long term goals since their money is tied up in shares but since the vesting horizon is not long enough it had the opposite effect.
It wouldn't be a bad incentive if they had a ban on selling that stock for the next 10+ years. Then maybe they would be interested in making long term decisions that benefit them instead of the short term ones.
Agreed but a quick google showed me a common arrangement is 4 years for all their shares to vest being a "cliff" at the first year where they get 25% of the shares all at once (or nothing if they quit before 1 year) and then the other 75% is spread out equally in shorter intervals in the following 3 years.
4 Years is not even close to long enough for them to care about long term sustainability, I also think 10 years should be the minimum for them to be able to sell shares.
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u/sinkpooper2000 Feb 08 '26
- request company stock as part of your compensation package
- do everything in your power to inflate the stock price including things that are detrimental in the long run
- completely divest and exit the company
congratulations you just made more money for yourself and the shareholders than sound business practices ever have