Re:The Long-Term Stock Exchange Opens for Business
by jl2718 on Wednesday September 09, 2020 @10:39AM
(#24421506)
Share loans are a really simple way to align incentives. Execs get shares loaned with interest at market value, and can’t sell faster than the loan repayment schedule of 20% per year after the end of tenure. Some other rules apply like dividends can’t be paid from a negative value loan. Sure, option incentive packages try to approximate this, but they can’t legally capture the downside like a loan can.
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