There is no more conflicted a transaction as when insiders (specifically, senior management) team with financial backers to acquire a company. That is because management are employed by the very people they are purchasing the asset from. Despite best intentions, it is a conflict that seems impossible to reconcile.
Henry kravis
Options not the only option for Sol
While Telstra has set relatively high performance hurdles regarding the exercise of options, the poor Telstra board (like most other public company boards) just don’t get it. That is, options don’t truly align the interests of senior management with shareholders. It’s all about getting skin in the game, not just your baby toe, writes Adam Schwab.
