Thinking Long Term: PART II > Executive Bonuses

On March 2, 2009, I blogged: "Thinking Long Term: Part I > Taxes on Dividends and Capital Gains," on the topic of, "how to reward long-term investors and discourage short-term traders."

Along that same line I have:

All bonuses paid to corporate executives over $1 million dollars must be put in an escrow account for a minimum term of five years.

If something happens between the date of issue and the date of delivery (that sheds a negative light on the revenues, earnings, moral code, etc., of the company) those bonuses are repealed and canceled.

Additionally, all bonuses paid and placed in escrow will be in the form of common equity (not cash, bonds, preferred stock, or other financial instruments).

This should make executives think long-term and protect the common equity of the company.

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