> And it's great for the those in charge of the budget cuts, because it is a loss that is very difficult to quantify financially, and will only show over a longer period of time. Typically, well after they cashed-out and left.
IMHO most executive pay should be locked up for decades by law, and they only get a middle-class wage stipend in the interim. And I mean really locked up, such that a significant fraction should only be payed out as long as 20 years later. And that pay gets forfeited if the organization has too many problems.
It'd help disincentive smash-and-grab management like you describe (because weakening the org would jeopardize the locked up pay, and would help a big with succession (because their pay would depend on the successor's performance, too).
Don't we have already solution for this? It is called pension. Extra executive compensation should be set up as pension, which starts paying at usual pension age. And it must be locked to only be shares of the company. And it should work by automatically selling to open market the shares locked up until the expected life expectancy expires.
And thus the cycle continues- the EU stifles meritocracy, bemoans the resulting lack of innovation and entrepreneurship, and resorts to inventing new and novel ways to penalize US companies as a coping mechanism
IMHO most executive pay should be locked up for decades by law, and they only get a middle-class wage stipend in the interim. And I mean really locked up, such that a significant fraction should only be payed out as long as 20 years later. And that pay gets forfeited if the organization has too many problems.
It'd help disincentive smash-and-grab management like you describe (because weakening the org would jeopardize the locked up pay, and would help a big with succession (because their pay would depend on the successor's performance, too).