> I'm not sure how that squares with moving from company to company...
The stipulation to accommodate moving from company to company could be an artificial constraint. The desired outcome goals of the company outweighs the desired outcome expressed by any individual executive. Incentive structures can reflect that.
There are many ways to accomplish this, but the reality is shareholders who wield sufficient power to enforce this goal-seeking simply are not interested in doing this. That's the real nut to crack. The incentive structure of owners and not just employees subject to the agency problem is part of the spectrum to consider.
Incentive structures all up and down the line of authority are a real tough design problem.
The stipulation to accommodate moving from company to company could be an artificial constraint. The desired outcome goals of the company outweighs the desired outcome expressed by any individual executive. Incentive structures can reflect that.
There are many ways to accomplish this, but the reality is shareholders who wield sufficient power to enforce this goal-seeking simply are not interested in doing this. That's the real nut to crack. The incentive structure of owners and not just employees subject to the agency problem is part of the spectrum to consider.
Incentive structures all up and down the line of authority are a real tough design problem.