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.
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A better comp plan? (for shareholders)
About the Author
Group Editorial Director Ginger Szala has written for and edited Futures magazine since joining in November 1983. Her main beats were covering the international growth of the business and its players and developing the managed funds coverage of the magazine. As a result she has interviewed some of today's best global hedge fund and commodity trading advisors. In 1999 she was named publisher in addition to editor of Futures, and in 2009 was named Group Editorial Director of Summit Business Media's Professional Services Group, which in addition to Futures includes Treasury & Risk, Credit Union Times and InsideCounsel magazines. She received a master's degree in journalism at Northwestern University's Medill School of Journalism. gszala@futuresmag.com
