That’s a good observation. Today’s Dual class systems only protect the founders from a specific kind of short-term pressure. But there are still thousands of employees overreacting to volatility and jumping at shadows. Our rules are designed to address the full “user experience” of being an employee in a public company, with the goal of aligning the whole enterprise towards more Long-Term goals.
employees should not be compensated with stock. Stock based compensation creates incentives for such employees to increase just the stock price without increasing the underlying value generation mechanism. Paying in stock also means you're forcing the employee to 'invest'. While it's true that paying with stock is a form of hand-cuffing to make sure the employee's incentive aligns with the company, i feel it's just too easy to 'game' this stock metric.
How does someone "increase just the stock price without increasing the underlying value generation mechanism"?
So they have to fool an army of analysts that are generally very very good at predicting growth and profits? They have to fool institutional investors who are literally pros at filtering through BS filing gimmicks.
I've worked on trying trade automatically trade earnings reports (professionally) and the biggest problem was always the numbers didn't tell the complete story and investors caught on in literally seconds.
