So I registered for an HR course and they taught me that the purpose of giving ESOPs to the top executives is primarily to incentivize/enhance loyalty to the company broadly. You can only encash the same after a year or two. What if some top-executive decided to hedge the position (using a stack and roll strategy and entered short futures positions on his own company)? The HR’s whole purpose goes for a toss?
In the US: a) There probably isn’t a futures contract on the company b) He better not tell anyone c) The tax consequences of the futures/ESOP do not make it a wash d) There are much better ways to do this
JoeyDVivre Wrote: ------------------------------------------------------- > d) There are much better ways to do this like?
Exhnage funds are probably best (google).
Aren’t executives not usually a part of the employee stock ownership plan?