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13.3: Equity Culture- Stock Price Appreciation Strategy and Management Ownership

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    Equity Culture: Stock Price Appreciation Strategy and Management Ownership

    • Aggressive positioning as a “growth stock”
    • Overpreoccupation of management on short-term stock-price appreciation
    • Low or no common dividend policy
    • Rapid accumulation of ownership (stock and options) by senior management, at a rate and to levels materially in excess of peer group
    • Long-established CEO and senior management team with significant ownership interest where structural complexity, leverage, or opaqueness are present
    • Growth in price–earnings ratio, stock price, or market capitalization materially in excess of peers