Can someone help me understand, Dan Lyons said the reason why company profit was lower in Q1 was driven by executives compensation due to 50,% run up in company stock price. Is this real?
Profits took a hit partly because of a dramatic runup in the company’s stock price, a rally that continued with the war in Iran. Part of the company’s compensation package for executives is linked to its share price — when the price goes up, so does the value of compensation.
The company’s stock rose by close to 50 per cent during the first few months of the year, resulting in “higher incentive compensation charges,” which weighed on profits, said Daniel Lyons, senior vice-president of finance and administration.
The charges amounted to $143 million after tax, Lyons said.
So are all executives having a party??
https://ca.finance.yahoo.com/news/imperial-oil-cuts-130-jobs-121636913.html