if you are an options or share holder, and the company whose stock you own attracts a multiple, then you have a rational interest in keeping costs under control.
for every dollar saved by the company, the market value of the company will increase by the amount of the multiple, all things equal.
so a company which spends the vast bulk of its profit on management bonuses is also going to destroy management compensation in the form of share ownership.
this is as true for a manager as it is for an average stock holder.
as a general rule, the prize of great wealth usually accrues to the successful entrepreneur via their ownership in stock.
| 