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(Bloomberg) -- It’s a good time for founders in China to take their startups public, at least by one measure. Chief executive officers are beginning to get ten-figure bonuses with their initial public offerings...
Generally we regard any pay package that doesn't align pay with performance not in the best interest of shareholders, Share awards that don't come with performance metrics defeat the whole purpose of equity retention policies, which are meant as incentives to executives to create value for the company and all shareholders.
The home run for the CEO is to take the company public, so just achieving the IPO is the incentive.
This is the one time when the chairman can personally reward people for having contributed to the company's success.
There are very few occasions to grant a stock award this big without any conditions.