alt Hacker NewsIf you want to discourage short-term thinking, make the vesting period longer on executive stock grants. Making companies' performance less transparent just opens up more opportunities for insider trading.
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Agree and make it two years for long term capital gains.
> If you want to discourage short-term thinking, make the vesting period longer on executive stock
It’s 3 to 4 years on average. This isn’t relevant to quarterly filing requirements.
Could also price in negative externalities of short term trading with higher taxes for that behavior, nudging the markets to focus on value driving investments rather than speculation
Harder to attract talent though (not saying you’re wrong)
The problem isn't the executives, it's the boards.
But board members are largely just a proxy for the large shareholders anyway. E.g., short-term investment strategies are not going away.
Working C-levels would almost always much rather take the longer view against the wishes of their boards.
> If you want to discourage short-term thinking, make the vesting period longer on executive stock
Give them no stock, pay them 100k a year and if they fuck up fire them rather than saying they left to "spend more time with their family" - kinda like the rest of the working joes out there.
Pay me 100mil this year and I might as well spend the rest of my time on the job gambling with shareholders money or trying to shag everyone in HR, there are no longer any consequences to my actions.