No Free Lunch 

Playing hardball

Paul Jackson

Playing hardball

One of the enduring myths about executive pay is that share awards fail to retain people. All that happens, so the argument goes, is that when executives jump ship, their new company replaces the old company’s outstanding share awards with new awards of their own. So let’s scrap the whole thing. Share awards cost a lot and, if they fail to lock people in, what’s the point?

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