Big Moat Stocks

In recent years it has become increasingly prevalent that many company executives, even if they hold a large amount of company stock, do not have their own interests aligned with the interests of the shareholders. For many of these execs, by the time they sit down at their desk on day one it has already been negotiated that their bank accounts are going to be well stocked by the time they leave the company, regardless of personal or company performance.

Mark Cuban, owner of the Dallas Mavericks, has offered his solution to the problem and while it seems like a good suggestion, the main issue will be getting the boards of these companies to go along with such an idea. The people who would be changing the status quo will be those who have benefitted or are currently benefitting the most from the way things are already set up.

Does that mean the government would have to step in and tell companies how the can and can’t pay executives? This is already done to some extent with current regulations but is more government involvement necessary? One thing is for sure, something needs to change.