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| Subject: executive stock options An employee stock option is a call option on the common stock of a company, issued as a form of non-cash compensation. Restrictions on the option (such as vesting and limited transferability) attempt to align the holder’s interest with those of the business’ shareholders. If the company’s stock rises, holders of options generally experience a direct financial benefit. This gives employees an incentive to behave in ways that will boost the company’s stock price. What would Adam Smith say? By John Schroy, on March 11th, 2010 |  2 comments  Most corporate executives of giant companies today are, in actuality, mere employees (‘workers’ in communist jargon) and are not capitalists or entrepreneurs at all. Their extraordinary remuneration schemes are provided without executives having employed or having risked any of their own capital and is often paid, even as a corporation slides into bankruptcy. Adam Smith recognized self-interest as a useful trait, but one that should not be allowed to override the nobler virtues. March 11th, 2010 | Print Article |  Email Article |  Topics: Abraham Lincoln, Adam Smith, Andrew Carnegie, Barack Obama, Capitalist Ideology, Communist Ideology, Corporate Governance, executive stock options, Frank Norris, Franklin Roosevelt, George Eastman, Gustavus Myers, Henry Ford, independent directors, John D. Rockefeller, Karl Marx, Lincoln Steffens, robber barons, Russian Federation, SEC Rule 10b-18, socialism, Soviet Union, Stanford University, Steve Jobs, Stock Buybacks, Thomas Edison, Upton Sinclair | Category: Economic Theory, featured | 2 comments |  Short urlEvolving economic thought By John Schroy, on March 5th, 2010 | Leave a comment  The August 13, 2009 issue of Business Week published an article, “The Buyback Boondoggle — Companies spend lavishly on share repurchases, slowing innovation and job creation”, by William Lazonick, a professor at the University of Massachusetts Lowell and director of the Center for Industrial Competitiveness. Because of the multi-trillion dollar scale of the enterprise, buybacks represent a fraud against the retirement plans of a whole generation on a scale that makes Bernie Madoff look like a piker. March 5th, 2010 | Print Article | Email Article | Topics: Capitalist Ideology, Corporate Governance, executive stock options, Stock Buybacks, University of Massachusetts Lowell, William Lazonick | Category: Stock Buybacks | Leave a comment | Short urlAs goes January? By John Schroy, on February 26th, 2010 | Leave a comment  Foreign investors and mutual fund shareholders were the primary buyers behind the Bear Market Recovery of 2009. Stock buybacks had disappeared, a significant modification in investor/issuer behavior that had been seen since 1982 and SEC Rule 10b-18. The rally hit a peak in January 2010, reminding many of the saying, “As goes January, so goes the year”. February 26th, 2010 | Print Article | Email Article | Topics: Baby Boomers, Ben Bernanke, Corporate Governance, dividends, Dow Jones, executive stock options, hedge funds, Inflation, insurance company, Leverage, mutual funds, SEC Rule 10b-18, Stock Buybacks, US SEC | Category: US Equities | Leave a comment | Short urlFeatured articles on inside pages
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