Stock Based Compensation?

[Kniz]

One suggestion that I have is for companies to have a stock based compensation plan for executives. As in real life, very few CEO's are paid $100's of millions in cash, but rather the company's stock. This would also need to have a way for private companies to still give stock to executives, and possibly Venture Capital.

Example #1-
Company Market Cap- $100/Share (public) 1,000,000 total current shares.
Jan 1st, new executive compensation plan
Total Shares issued at end of year- 5,000
CEO- 4,000
COO- 1,000, etc.

There would have to be a way that the compensation is set at a certain time, and shares are gifted, if the executive stays the whole time.

Another proposal/way this could work.

Example #2-
Executive Comp Bonus (This would be similar to the goals but set by the company, and also paid for by the company, not free $)
Proposal-
If company hits $500 Million market cap, the CEO is awarded (2%) of all shares.
If company hits $300 Million market cap, and a P/E of under 20, CEO is awarded (2%) of all shares.

I believe having this system, like real life, would lessen the cash burden for companies, and also help motivate the executives more. Dilution could be used as a tool, again like in real life.



Here is forum link from original post w/o poll.
viewtopic.php?f=14&t=8073

[standardplayer]

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