Criticism
Alan Greenspan was critical of the structure of present day options structure so John Olagues created a new form of Employee Stock Options called Dynamic Employee Stock Options that can be found at or at, which restructures the ESOs and SARs to make them far better for the employee, the employer and the wealth managers.
Charlie Munger, vice-chairman of Berkshire Hathaway and chairman of Wesco Financial and the Daily Journal Corporation, has criticized conventional stock options for company management as:
- "... capricious, as employees awarded options in a particular year would ultimately receive too much or too little compensation for reasons unrelated to employee performance. Such variations could cause undesirable effects, as employees receive different results for options awarded in different years."
- and for failing "to properly weigh the disadvantage to shareholders through dilution" of stock value
Munger believes profit-sharing plans are preferable to stock option plans.
According to investor Chairman & CEO of Berkshire Hathaway Warren Buffett, `There is no question in my mind that mediocre CEOs are getting incredibly overpaid. And the way it's being done is through stock options.`
Read more about this topic: Employee Stock Option
Famous quotes containing the word criticism:
“Good criticism is very rare and always precious.”
—Ralph Waldo Emerson (1803–1882)
“Of all the cants which are canted in this canting world—though the cant of hypocrites may be the worst—the cant of criticism is the most tormenting!”
—Laurence Sterne (1713–1768)
“However intense my experience, I am conscious of the presence and criticism of a part of me, which, as it were, is not a part of me, but a spectator, sharing no experience, but taking note of it, and that is no more I than it is you. When the play, it may be the tragedy, of life is over, the spectator goes his way. It was a kind of fiction, a work of the imagination only, so far as he was concerned.”
—Henry David Thoreau (1817–1862)