- High Compensation without Revenues—Now That's a Problem
- Money Is Not Everything—But It's Pretty Darn Important
- Whatever Goes Up...
- Return without Risk: Not Bad if You Can Get It
- Want Growth? Just Acquire It
- CEOs May Serve Themselves First
- Management by the Numbers: Executive Compensation and Shareholder Return
- Highest Paid = Highest Performance? A Look at Business Week's Top 20
- CEO Influence: Examples of Style
- Lessons Learned?
- Do Senior Agents Represent Themselves More than Other Stakeholders?
- Incentive Orientation: Things Need to Change
CEO Influence: Examples of Style
If, in fact, M&A activity is related to poor subsequent stock performance, executives should seek fewer deals than they do. More important, it is counter-intuitive that executives get financially rewarded for pursuing transactions that in the long run reduce stakeholder value. In a few high-profile transactions like, for example, Travelers Group and Citigroup, senior executives sold their firms to rivals, pocketing an enormous windfall as they walked away.25 Many subordinates would be later fired or pushed out in the consolidation and often the combined entity would not reap the projected advantages of synergy. Given these obvious potential conflicts of interest, shouldn't compensation programs address these potentially disastrous developments?