In what way is restricted stock compensation a “fixed cost”? Does restricted stock affect diluted EPS as do stock options?
Would you want to know the ratio of a firm’s CEO compensation to the median compensation of the firm’s employees? Why or why not? Would the information have any effects on decisions you would make with respect to the firm, such as whether to buy its products? Why?
Assume that you are the CEO of a firm whose total return to shareholders fell in 2011. How do you respond to criticisms of your compensation?
What is your opinion about this “give-it-back, or else” demand from Zynga? What are the implications for Zynga?