Comment by hoten
7 hours ago
Didn't they craft themselves a nice golden parachute if fired? Then proceeded to kick off events that would guarantee their dismissal?
That's less fiduciary duty and more hacking a payday.
7 hours ago
Didn't they craft themselves a nice golden parachute if fired? Then proceeded to kick off events that would guarantee their dismissal?
That's less fiduciary duty and more hacking a payday.
> That's less fiduciary duty and more hacking a payday.
A large golden parachute for firing a board member could be a disincentive mechanism to do it: a 'poison pill' of a kind.
* https://en.wikipedia.org/wiki/Shareholder_rights_plan
They could have felt they were doing the right thing, and making a public statement of the situation, but knew it was a bit of a kamikaze tactic and so made it more painful for when the eventual backlash occurs.
Regardless of intent, if true (haven't verified myself) it seems like a hell of a perverse incentive.
IMHO so it tying CEO pay to stock price. Unless the options/cash-out is delayed for 5+ years after they leave the position, they can 'juke the stats' in the short-term while leaving the company in a bad place long-term (obligatory Boeing-being-run-by-MBAs reference).
If it was a poison pill then why make the severance $8M instead of the majority (or all) of the value of the company?
Getting out of a toxic job while failing up. Business can be strange sometimes.