{"id":383,"date":"2006-04-18T09:51:52","date_gmt":"2006-04-18T16:51:52","guid":{"rendered":"http:\/\/www.stardel.com\/eg\/?p=383"},"modified":"2006-04-18T09:51:52","modified_gmt":"2006-04-18T16:51:52","slug":"11-companies-rewarding-failure-financial-news-yahoo-finance","status":"publish","type":"post","link":"https:\/\/stardel.com\/eg\/2006\/04\/11-companies-rewarding-failure-financial-news-yahoo-finance\/","title":{"rendered":"11 Companies Rewarding Failure: Financial News &#8211; Yahoo! Finance"},"content":{"rendered":"<p><a href=\"http:\/\/biz.yahoo.com\/fool\/060418\/114536965804.html?.v=1\">11 Companies Rewarding Failure: Financial News &#8211; Yahoo! Finance<\/a><\/p>\n<p>It is interesting to see these compensation articles.  I think that too much of an executive&#8217;s reward structure is based on short-term goals and the executive has often disappeared  when the company collapses in the long-term (5-years or more.)<\/p>\n<p>Why not develop a long term incentive system along the line that sets up long-term and short-term goals for an exec, with commensurate rewards based on whatever metrics the board wants to use. But, the exec can not collect the short-term rewards unless the long-term goals are met.<\/p>\n<p>So, if an exec gets a bonus for raising the stock price 20% one year, and has a 5-year goal of doubling customers, the exec doesn&#8217;t collect the  1 year bonus for at least 5 years and then only if the customer base has doubled.<\/p>\n<p>There are a fair number of variation on this theme; the main point is to hold an exec&#8217;s feet to the fire to ensure the long-term success of a company and not to allow an exec to gut a company to promote short term success. (I wonder what would have happened to the dot-com bubble if no one got any rewards until the long-term goals were realized?)<\/p>\n<p><!--more--><\/p>\n<p>This view on compensation is independant of any view that annual compansation in excess of the US president&#8217;s salary should be treated and taxed as corporate profits.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>11 Companies Rewarding Failure: Financial News &#8211; Yahoo! Finance It is interesting to see these compensation articles. I think that too much of an executive&#8217;s reward structure is based on short-term goals and the executive has often disappeared when the company collapses in the long-term (5-years or more.) Why not develop a long term incentive &hellip; <a href=\"https:\/\/stardel.com\/eg\/2006\/04\/11-companies-rewarding-failure-financial-news-yahoo-finance\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">11 Companies Rewarding Failure: Financial News &#8211; Yahoo! Finance<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7],"tags":[],"class_list":["post-383","post","type-post","status-publish","format-standard","hentry","category-general"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p4NpF-6b","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/posts\/383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/comments?post=383"}],"version-history":[{"count":0,"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/posts\/383\/revisions"}],"wp:attachment":[{"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/media?parent=383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/categories?post=383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stardel.com\/eg\/wp-json\/wp\/v2\/tags?post=383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}