The Executive Compensation System is Broken

Bogle, John C.
June 2005
Journal of Corporation Law;Summer2005, Vol. 30 Issue 4, p761
Academic Journal
The article presents author's views and experiences as founder and chief executive of the Vanguard Group in the United States, relevant to executive compensation issues. He claims that his company tried to minimize the use of stock options, and replace them with restricted stock options in which the shares would have to be held for a certain period of time. Such option plans has resulted to increases in economic value for executives in the country.


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