Ownership is irrelevant when compared to other criteria
Tags: DIRECTORS of corporations; STOCK ownership; OUTSIDE directors of corporations; STOCKS (Finance); INSIDER trading in securities
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- Directors should hold for the long term. Gogel, Donald J. // Directors & Boards;Summer2002, Vol. 26 Issue 4, p17
Argues that the sale of stocks by directors creates a perception that directors and shareholder interests diverge in the U.S. Private equity model of director stock ownership; Creation of perception that the sale is motivated by superior insight into the company's forecast; Dilution of...
- A commitment of time and financial capital. Elson, Charles M. // Directors & Boards;Summer2002, Vol. 26 Issue 4, p19
Argues that directors should not sell company stock for the period during which they serve as directors in the U.S. Lost of the incentive that equity-based director compensation and stock ownership provides; How the investing public would view the sale; Strict and onerous laws that prohibit...
- A balanced policy is better than an outright ban. Aisenbrey, Beverly W. // Directors & Boards;Summer2002, Vol. 26 Issue 4, p22
Argues in favor of allowing directors to sell their company stocks while they are on the board in the U.S., within the context of a balanced policy that considers the proper alignment between financial interests of directors and shareholders. Attractiveness of the director compensation program...
- The director's 'wealth leverage' is insufficient. O'Byrne, Stephen F. // Directors & Boards;Summer2002, Vol. 26 Issue 4, p24
Argues that a prohibition on director stock sales can make a contribution to strong financial incentives for directors but it will not make a significant contribution until companies dramatically increase their directors' stock and option compensation. Sensitivity of the director's wealth to...
- Should directors ever sell? Meyer, Pearl // Directors & Boards;Summer2002, Vol. 26 Issue 4, p15
Argues that imposing a blanket prohibition on the sale of stock by sitting directors in the wake of the Enron Corp. scandal would backfire as surely as have other `one-size-fits-all' attempts to regulate corporate pay in the U.S. Absence of anything wrong about an outside director selling stock...
- Better ways to achieve a 'parallel interest'. MacDonald, Robert W. // Directors & Boards;Summer2002, Vol. 26 Issue 4, p18
Argues that prohibiting directors from selling their stock will not save a foundering company in the U.S. Importance of putting directors in a position of parallel interest with shareholders of a company; Better ways to achieve this parallel interest than to simply prohibit directors from...
- 'Alignment demands ownership' is a flawed dogma. Kaback, Hoffer // Directors & Boards;Summer2002, Vol. 26 Issue 4, p20
Argues in favor of allowing directors to sell the stocks they own in a company while they sit on the board of that company in the U.S. Presupposition that directors should align themselves with shareholders through the mechanism of buying and then not selling shares; Flaws of this dogmatic...
- Directors don't deserve such a punitive policy. Atkins, Betsy // Directors & Boards;Summer2002, Vol. 26 Issue 4, p22
Argues that it is ill-advised to prohibit directors from selling their company stocks in the U.S. Ineffectiveness of prohibiting trading in situations where a director is inappropriately using insider information; Assumption of a punitive position of wrongdoing; Punishment of an entire class of...
- The Relationship Between Board of Director Composition and the Pricing of Stock. Schellenger, Michael H.; Wood, David D. // Journal of Economics & Finance;Fall91, Vol. 15 Issue 2, p171
The development of agency theory has introduced another variable which may be used by investors to earn greater risk-adjusted returns. Traditionally, various stock ownership measures have been used as a proxy for agency problems. However, the board of directors may also be an important proxy for...
