13.3: Equity Culture- Stock Price Appreciation Strategy and Management Ownership
- Page ID
- 22684
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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