A better comp plan? (for shareholders)

On the heels of the AOL purchase of the Huffington Post, and Arianna Huffington taking mostly cash in lieu of AOL stock as payment, a new study on bank CEO compensation came to the conclusion that executives of banks should only receive restricted stock and stock options, forcing them to hold on to company stock or options for two to four years after they leave the company. All in all this would work better for shareholders, especially as the study found bank execs involved in much of the bad behavior during the financial crisis were more likely to be involved in sell trades of company stock than open-market buy trades. Talk about insider trading. Here is Simon Johnson's blog on the study.

About the Author

In her many years covering the futures industry Ginger has interviewed some of today's best global hedge fund and commodity trading advisors. Ginger received a master's degree in journalism at Northwestern University's Medill School of Journalism and a bachelor’s in communication arts from the University of Wisconsin – Madison

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