Monday, January 31, 2005

Now, that is a real surprise.

WSJ reported today in a feature on M & A that an independent study (by someone from academia) has found that the top people at companies about to be sold were willing to settle for a lower buyout premium (i.e a worse deal for shareholders) in exchange for sweetened personal payouts/option grants and lifelong pensions.

While it is hard to grudge the windfall for someone who has turned around a Gilette or smartly grew Guidant, in most cases loyal shareholders just got the equivalent of a middle finger!


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