Prohibit corporate executives and senior managers from buying or selling their own firm’s stock to eliminate a class of incentives that can lead to short‑termism, manipulation of accounting targets, and conflicts with long‑term firm health. The rule would force executives to realize compensation through long‑dated equity retention or other mechanisms aligned with durable performance.
— If adopted, this regulation would reshape executive compensation incentives, affect market liquidity and signaling, and reframe debates over how securities law should police conflicts of interest.
Oren Cass
2026.03.06
100% relevant
Oren Cass explicitly proposes to “prohibit via regulation a firm’s management trading in its own stock because the incentives to do so are badly misaligned with the firm’s and economy’s long‑term health.”
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