Some very interesting points in here. Rumblings indeed. I have to agree that the system is broken. Remuneration, incentives and performance targets are poorly managed and also encourage some dishonest behaviour.
The incentives offered to increase share price are totally at odds with what ASIC and the ASX are trying to achieve with open disclosure. What foolish CEO is going to go out on a roadshow just before his incentive scheme kicks in and tell a true picture of what’s happening in the business?
Unfortunately, I can’t see this changing in the short-term, but we can hope.
ABOUT THE AUTHOR
SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
COMMENTS
SmartCompany is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while it is being reviewed, but we’re working as fast as we can to keep the conversation rolling.
The SmartCompany comment section is members-only content. Please subscribe to leave a comment.
The SmartCompany comment section is members-only content. Please login to leave a comment.