Infrequently Noted

Alex Russell on browsers, standards, and the process of progress.


I applaud counting stock option grants against earnings. It's about damn time.

On the other hand, I'm not sure that I understand how forcing executives to hold large stock positions during their employment is a Good Thing.

Somehow it seems to me that instead of encouraging harmful short-term thinking among management, such a provision only encourages harmful short-term employment instead. If the goal is to make executives more responsive to the long term needs of shareholders, then this is sure to backfire.

Instead of the current modus operandi (puff the stock, cash out, then leave), we get the much more palatable permutation: puff the stock, leave, and then cash out.

Progress, sweet progress...