> If you want to discourage short-term thinking, make the vesting period longer on executive stock
Give them no stock, pay them 100k a year and if they fuck up fire them rather than saying they left to "spend more time with their family" - kinda like the rest of the working joes out there.
Pay me 100mil this year and I might as well spend the rest of my time on the job gambling with shareholders money or trying to shag everyone in HR, there are no longer any consequences to my actions.
You get paid for what it costs to keep you in the seat and valuable. They get paid $100M because they're making decisions affecting >$1B.
The exec's bosses are the board, the people who represent the stock holders, so the exec's compensation is a direct reflection of the incentive the board is giving them. Stock options ensure they look out for that ticker. If the board didn't want short term gains they can always change their mind on the structure of exec compensations.
> Give them no stock, pay them 100k a year
That used to be the case, though more like millions a year. Clinton ended it.