CEO Excess

Now that several executives have been sentenced to significant jail time, one of the messages is clear. Over the top excessive entertainment is the kiss of death. Particularly when funded by the shareholders. As investors select potential investments any signs of expensive entertainment are now sure signs of executive rot. The trick will be in establishing corporate governance procedures to catch potential problems before the spending actually occurs. The challenge will be standards creep. As the good times roll the tendency is to have better parties. Then again if you have solid managers they should not be asking the shareholder for party money.