The Impact of Equity Ownership on Returns -Knowledge @ Wharton: "Larcker, Guay and their colleague John E. Core did a broad survey of academic research and could not find compelling evidence that employee ownership, through options or shares, boosts shareholder returns. �Whether it translates to the bottom line is totally unclear,� Larcker said."
You have to sort of agree; especially in companies that are not performing that well. How often the refrain from managers; reset my options to incentivise me to work - nothing is more likely to turn me in to a miserable approximation to every managers worst type of VC.
Not that Options are a bad thing; how else do you pay people in companies that are short of cash?
31 July 2003
The Impact of Equity Ownership on Returns -Knowledge @ Wharton: "Larcker, Guay and their colleague John E. Core did a broad survey of academic research and could not find compelling evidence that employee ownership, through options or shares, boosts shareholder returns. �Whether it translates to the bottom line is totally unclear,� Larcker said."
You have to sort of agree; especially in companies that are not performing that well. How often the refrain from managers; reset my options to incentivise me to work - nothing is more likely to turn me in to a miserable approximation to every managers worst type of VC.
Not that Options are a bad thing; how else do you pay people in companies that are short of cash?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment