Because once valuation is determined, the price is then calculated by the number of shares outstanding. The more shares the CEO owns, the less the potential buyout "price" is
If we get bought out for a decent price, why should I give a damn how many shares Nasrat has?
No, for the buyout scenario, it IS NOT in Nasrat’s interest to have the price rise. All that matters is total number of shares he owns. So the lower the pps, the more shares he gets paid as salary. This is why our situation as shareholders is now so precarious.
I used to think that we were all in the same boat—that whatever benefited Nas also benefited us. But now i think there’s a conflict of interest between what’s best for him vs what’s best for us. WHAT (if anything) CAN WE DO????