Good move by GE shareholders

GE shareholders have put some extra vesting conditions for the CEO’s options. Since a large part of a stock’s performance(especially for large companies) is based on general market conditions, I had always thought that just plain vanilla options were not the right way to reward for performance. In fact a CEO can do very well with a volatile stock if he keeps getting awarded options at regular intervals. A better method is relative performance. GE shareholders are moving in that direction. Here are  more details. I think this is a good sign that institutional shareholders are taking their role as owners of a company more seriously.

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