UTA: Doubling Down on Failure

Imagine for a moment that you own shares in a company. This company has had a history of disappointing financial results and hasn’t hit their financial targets for a long time. Nevertheless, you own a part of it and you hope that one day your investment will be worth something. At the shareholders’ meeting last year, the CEO and Board of Directors put forth a proposal to bonus the executives based on a series of criteria. If they hit each of 5 targets, they would be given a bonus. At…