Instead of short term bonuses, CEO's should be paid bonuses over ten or twenty years, or even over the rest of their lives with the amount varying according to the current performance of the company, and of course ending if the company goes bankrupt.
One way to do this is to give them stock with no-options: no option to sell, especially to pump and dump with insider trading.
This would encourage them to build the company for long term success and even to withstand incompetent management after they leave.
Whatever the problems are with this, it would be far superior to the current system where bonuses are given out regardless of performance, with execs acting more like parasites draining blood from their host until it's dead instead of nurturing it's real (not paper) growth and stability.
Someone will say that you can't force them to keep stock, but that is essentially what they do to employees with pensions. Then when they fuck up by giving too much money to their cronies or not hiding their bookkeeping sleight of hand well enough, their employees are left eating dog food when they retire.
The only real problem I see with this is there aren't enough MBA's who don't actually know how to make things and provide services.
These sociopathic trust fund babies didn't rake leaves and flip burgers as kids like the rest of us, but instead stole money from their mummy's purse to spend on coke and whores. Now they just steal from their shareholders and employees.
It could be that in the long run, this would restore something like a meritocracy to our financial elite that would replace the current clusterfuck of country club Caligulas.
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1 comment:
While I'm vague on the specifics, I agree with the basic philosophy. CEOs should be rewarded for building stable, profitable corporations, not for selling off the furniture and leaving.
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