With dozens of U.S. companies under pressure in options scandals I think we need to start taking seriously some of the underlying reasons this is happening.
The latest casualty is William McGuire at one of the largest health insurance companies in the U.S., UnitedHealth Group.
What is happening is that companies are allowing some of their top execs to backdate stock options, which allows for getting unfair financial gains.
While some people argue about the size of perks and pay packages that executives should make, this isn't the problem here. This goes 
way beyond that.
There should never be a company that is so desperate to get some specific or type of manager that they are willing to go to any lengths to keep them. As far a public companies go, board members need to be taking their jobs a lot more seriously.
If the compensation packages aren't enough, then go about negotiations in an ethical and open way. If the person involved isn't able to legitimately grow or operate the company in a profitable way, no amount of money or shenanigans is going to improve their performance.
Management needs to be accountable for measurable results that have larger compensation tied to that. Business leaders need to commit to a company to truly make it great for everyone involved; from customers, workers, shareholders and finally themselves. This type of practice isn't going to stop if management is only concerned about what they can get out of something. How much is enough for some people? Boards and leaders need to answer the question.
There are already over 100 companies that are being investigated for the practice.
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview