Anthony Scilipoti
๐ค SpeakerAppearances Over Time
Podcast Appearances
My business is a B2B business that's totally outside of being affected by current GDP movements, and my stock price falls.
I had no control over that.
So I think it incentivizes what I think the wrong thing is and makes people make potential decisions which can manipulate the stock price, which may or may not be good for the company.
Oh, on their stock.
I'm going to look for, okay, so the answer to your question is about what incentives do I think make sense.
Well, you look at what the key measures of success are for the company and do those align with investors' interests.
So investors care about the company's longevity, its ability to generate cash, its ability to grow and sustain itself.
And if the company's incentives aren't linked to that, so if they're not tied to cost control, if they're not tied to driving revenues from an organic standpoint, not just from acquisitions, if they're driven by acquisition but with no care to what's going on on the balance sheet, that's a problem.
I would say, you know, it's not easy to say that just I hate, I'm sorry, but one, here's the one thing and it's going to work.
But I think it's one where is it consistent?
Did it change?
Did a company say, you know, we're going to pay management on X performance metric if they hit it?
They get 100 percent.
If they don't, they get some graduated scale.
Well, then management doesn't hit it and they change the metric and management still gets a bonus.
I think that's a problem.
Because now what that does is it says that everything's OK.
And, you know, it's hard again.
Now I'm a board.
See, the more you learn and the more experience you have, you understand more about what you don't know and that there's a lot of things to learn.