Corporte GreedIt is unbelievable that, in a supposedly regulated investment environment someone cannot stop this, what is perceived to be, erosion of corporate capital.
It seems that every second annual report that I receive lists a new granting or repricing of options (always downwards of course), and award of free performance shares, usually for those whose stock has underperformed the market. Some boards or management have the gall to suggest it is to align the interests of the management with shareholders.
Management and boards of directors of most companies are paid very well to manage. To align their interests with those who are paying their fat salaries, they should be purchasing shares so that they can participate in the rewards of a capitalist society. If they are unable to perform, ie. create shareholder value, their salaries should be reduced accordingly and if their performance continues to be below par they should be terminated. That is how it works in the real world for those who have to work for a normal living.
Investors risk their money to buy shares or options to provide the capital necessary to build a viable business. It should not be the agenda of the board of directors or the management to line their own pockets at no risk to themselves while further eroding shareholder capital.
When will the OSC and TSE change the rules to protect those who provide the capital by investing in these listed companies?
I guess I know the answer to my own question, not in my lifetime. Sorry for the rant but I had to vent somewhere.