> That's less fiduciary duty and more hacking a payday.
replyA large golden parachute for firing a board member could be a disincentive mechanism to do it: a 'poison pill' of a kind.
* https://en.wikipedia.org/wiki/Shareholder_rights_plan
They could have felt they were doing the right thing, and making a public statement of the situation, but knew it was a bit of a kamikaze tactic and so made it more painful for when the eventual backlash occurs.
Regardless of intent, if true (haven't verified myself) it seems like a hell of a perverse incentive.
replyIMHO so it tying CEO pay to stock price. Unless the options/cash-out is delayed for 5+ years after they leave the position, they can 'juke the stats' in the short-term while leaving the company in a bad place long-term (obligatory Boeing-being-run-by-MBAs reference).
replyIf it was a poison pill then why make the severance $8M instead of the majority (or all) of the value of the company?
replyGetting out of a toxic job while failing up. Business can be strange sometimes.
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