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fbg0316

12/18/16 10:41 PM

#9873 RE: ignatiusrielly35 #9872

Hard to tell whether it impacts valuation, but at least marginally management incentive structures do matter IMO and one could argue the current structure DO has established of non-performance based RSU grants to incoming execs, rubber stamped by a stacked BOD, do not incentivize shareholder value creation as much as they guarantee management will be significantly rewarded regardless of whether shareholders see value by way of a ROI. Options address that problem with their strike price ensuring management only gets paid excess bonus awards if they create shareholder value at the same time.