Don Marti

Mon 06 Mar 2006 05:22:57 PM PST

QoTD: Warren Buffett

"It's child's play for a board to design options that give effect to the automatic build-up in value that occurs when earnings are retained. But ­ surprise, surprise ­ options of that kind are almost never issued. Indeed, the very thought of options with strike prices that are adjusted for retained earnings seems foreign to compensation 'experts,' who are nevertheless encyclopedic about every management-friendly plan that exists.

...

Though I have served as a director of twenty public companies, only one CEO has put me on his comp committee. Hmmmm..."

-- Warren Buffett (PDF) (via Dan Gillmor