Comments on: How to Fix Executive Pay: Get Skin in the Game

By: Colin Mathews

Colin Mathews — Thu, 18 Mar 2010 12:52:24 +0000

Yes, you’re right that the strict definition of decimate is to reduced by a tenth, as was done in the Roman legions. More colloquially, it has come to mean “to wipe out a lot of something.” But I take your point.

“Long term performance” is hard to define and lends itself to gaming. What I’d like to see is that managers–especially the most senior ones–are exposed to the risk of catastrophic loss of wealth if they do a lousy job running their companies.

By: Mobius

Mobius — Thu, 18 Mar 2010 07:08:52 +0000

I’d like to ask you what you think the word “decimate” means. Because in my dictionary, it means “to kill one in every ten”. To decimate something is to reduce it by 10%.

I’m sure most stockholders would LOVE to have accepted a 10% drop in their portfolios over the last 2 years.

I’d like to see senior executives compensation based on long term performance, and to limit their share selling until at least 1 year after they leave the company, and possibly two years.