It used to be illegal to pay C-suite executives with stock. Not any more:
The explosion of stock options increased from zero in the 1980s to 60 per cent of median pay for CEOs of Fortune 500 companies by 2001 (Figure 1) (Clarke, 2013; Stout, 2012a).
Figure 1:
Composition of Median CEO Pay in the US (1989–2012). Source: Compiled from Forbes Annual Executive Compensation Report. http://www.forbes.com/lists/2012/12/ceo-compensation-12-historical-pay-chart.htmlHall, Brian J. (2003), Six Challenges in Designing Equity-Based Pay, Journal of Applied Corporate Finance, 15(3): 21–23.
It also used to be illegal to do stock buy-backs, and even to sell goods at lower than the manufacturer's suggested retail price. Imagine WalMart without that last one! (Source: Matt Stoller's Goliath)
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