Insider Loans: Everyone Was Doing It

from the and-that-makes-it-okay? dept

Business 2.0 gets to the bottom of the issue of corporate “insider” loans to executives that have become very popular and which are now under fire from the government. It seems that tons of companies gave top execs loans. These loans were usually to buy company stock, but sometimes they were for just about anything the execs wanted. Even worse, however, is the number of companies that later forgave those loans – basically giving the executives “risk free” stock (or just plain free money) at the expense of all the other shareholders. Some companies claim that they had to do so to stay competitive, though the article points out that companies like Intel and P&G have stayed pretty damn competitive without ever offering such loans. Just another one for the ridiculous executive compensation file. Of course, as you would expect, many companies are lobbying Congress not to outlaw the practice, or to at least leave plenty of loopholes they can slip through.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...