Wednesday, November 26, 2008

Bail Out conditions

I have been thinking about my previous post. And I have to wonder why limit the conditions to Auto companies.

If companies are going to get tax-payer money to keep them from bankruptcy then why not apply the $100K salary cap for 3 years with other compensation paid in stock options that they can not sale for 10 years? Apply it to all of the C-suite executives at the time of the bail out. To me if they feel this is a bad deal for them then they do not believe they can turn the company around and the government money is just "pouring good money in after bad".

The 10 year black out on options sells is intended to keep them focused on the long term good of the company, not next quarters numbers. What are the down sides?
Bookmark and Share


Post a Comment

<< Home