Well, they may be revolutionizing the way that boards are compensated as long as they follow a recommendation from the shareholders - one that says that executives and board members need some sort of accountability for their actions.
Alaska Airlines has been doing better than the rest of the airline industry, but shareholders want a bigger say in what kind of performance they see from the company and want to choose the rewards for the executives.
Although the suggestion made by shareholders is not binding, it could be well for the executives who really want to show that they are dedicated to the company; on the other hand, given a down economy and an especially more difficult airline industry, Alaska Air could go through executives pretty quickly and not have a better result than they currently have with self-rewarded executives.
No comments:
Post a Comment