The Highest-Paid CEOs Are The Worst Performers, New Study Says

[Bronzeage]

In this particular example, we are talking about a scheme to maximize the CEO's paycheck through a scam which substitutes stock for cash payments. We left off the part about the stock "buy price" being set below market value, insuring a profit. This is not about optimizing the CEO's incentives to not run the company bankrupt.

i'm not sure I'm following. CEO pay is maximized if the stock prize goes up. Where in a period of time that the options can be exercised is the issue.

It was just a sidetrack. CEO's are payed with rigged stock options to let them pay less taxes on their income. My point was, the time period for the eventual pay out should be at least 5 years, which would give an incentive to create stable long term growth through increased productivity.