Choice Quote by Aswath Damodaran
““Avoid companies that are cavalier about issuing new options to managers””
About This Quote
The advice warns against investing in companies that freely grant stock options to managers, implying it can dilute shareholder value.
In simple terms: Avoid firms that issue many manager options.
Key Takeaway
Prefer companies with disciplined equity policies.
Themes
finance
corporate governance
investment
Mood
cautious
informed
Type
financial
advisory
When to use this quote
- stock selection
- portfolio management
- company analysis
Key Concepts
stock options
shareholder dilution
Questions to Reflect On
- How do manager options affect company incentives?
- What safeguards can protect shareholders?
