I see that the Sunday Times has had a go at Quindell (QPP) CEO Rob Terry for picking up a £720,000 cash bonus last year given that the share price has halved in recent weeks. The Newspaper is right but for the wrong reasons.
Bonuses should not be linked to share price performance. We all want to see a CEO present a case well so the shares go up that is part of the job. But to link a bonus solely to short term share price movements merely encourages ramping and is not the way to deliver a sustainable long term growth in shareholder value. So in my view a bonus should not in any way be linked to the share price.
As it happens
on ShareProphets | CommentsFiled under: