Albert Meyer

Bank Insiders Made Out Like Bandits

On the contrary, this article is extremely worthwhile. It highlights the dangers of investing in companies that make use of stock options to compensate executives. Far from aligning the interests of insiders and shareholders, employee stock options place insiders at a huge advantage over shareholders.

Stock option plans are front-running, stock-watering and insider trading all wrapped-up in one and legitimized by the guardians of our capital markets.

Millions of Americans are foolishly placing their retirement funds in index funds, ETFs and the like. Managers of these funds are "forced" to invest in these stock option disasters. Hundreds of millions of dollars of hard-earned wages are deftly transferred from the middle-class to a handful of executives.

This inequitable wealth-distribution (legitimized theft) is bad for the social fabric. It’s a stain on our capital markets. Articles like this educate the public. Hopefully one day, legislators and regulators with a conscience will step in and remedy the situation.