The idea of firing professors is tempting, until you realize that you're not the one with the power to fire them. Chances are, given
TBN's demographics, its the ones you like who will be fired and replaced with ones that are closer to status quo.
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Originally Posted by 2manyrocks  CEO's need to pay for their stock in cash like everybody else |
I think you misunderstand the nature of stock grants and options. They're not gifts, they're pre-negotiated or expected compensation that's cheaper for the corporation to give than the effective cash value. Given a choice between $100,000 in stock and $100,000 in cash no CEO in his right mind would take the stock. For one, stock grants are taxed upon receipt so $100k in stock would mean you'd need to sell some right away to cover (and selling stock as a senior exec is extremely regulated so it's not easy to do unless you set it up beforehand) or you need to fork over cash to cover the taxes. More importantly, you get to decide how to spend cash while you're forced into that decision with a stock grant. The choices aren't $1.5M plus stock for a compensation package or $1.5M alone, it's $1.5M plus stock or $14.3M in cash. Probably a lot more since the company didn't do well, depending on the nature of the package the total compensation would probably have been $20M or more had GM held its value. Stock and options grants ARE the way to force CEOs to have more skin in the game.