Don’t bother with share-based pay

By Edward Hadas – Over the decades, all investors’ psychological errors might be corrected and all monetary forces could cancel each other out.

But shareholding workers may well have to wait a half-century or so before they can be confident that the stock market will justly reward them for their company’s economic performance.

Most of the employees concerned will have retired or died by the time the stock and economic returns have been well aligned. In the interim, the price will reflect many things, with corporate success quite a way down the list.

The responsibility of almost all workers is too limited to move the share price. A few top executives have that power, but even they are often victims or beneficiaries of larger trends. more>


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