Re:Overpaid CEOs 2019
by mactrey on Friday February 22, 2019 @06:53PM
(#19230327)
It may even be that:
* Normal-Person will increase profits by 5% and will dutifully inform the media of those gains
* Super-Exec will increase profits by 5% and will give a charismatic interview leading the market to believe that profits may increase by 10% the next year, which is reflected in an outsized 30% rise in the price of company stock
The board will hire Super-Exec for $50mm/yr because they all hold stock in the company and are thus more interested in the stock price than in the company fundamentals.
* Normal-Person will increase profits by 5% and will dutifully inform the media of those gains
* Super-Exec will increase profits by 5% and will give a charismatic interview leading the market to believe that profits may increase by 10% the next year, which is reflected in an outsized 30% rise in the price of company stock
The board will hire Super-Exec for $50mm/yr because they all hold stock in the company and are thus more interested in the stock price than in the company fundamentals.