Our expert panel discusses the work of boards of directors and the governance practices at public companies ...Read the full article
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bill the cat from calgary, Canada writes: I worked for a small energy trust firm that was taken over/merged by a larger energy trust earlier this year. The small trust missed some initial guidance and quickly became a takeover target. The compensation structure for employees was based, 50% on corporate performance and 50% on individual performance. Prior to the merge, the board voted, out of the goodness of their heart to accellerate the corporate performance portion so that it vested earlier and removed most of the performance related hurdles. In addition, one month prior to the merger, the V.P and president were awarded approximately 0.5 million in options. Summed up, the accellerated vesting and bonus totalled 2 million each. All of this for a company that lost 1/3 of its share value in a year after listing. All of this was approved by the 'independant boards'. How can this be viewed as accountability when this sort of thing happens all the time. Incompetent managers awarded vast sums, simply because they are part of the club.
- Posted 25/10/06 at 2:47 PM EDT | Alert an Editor | Link to Comment
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