In theory, you want to have your senior leadership financially invested in the success of the company.
In practice, it creates a perverse incentive.
If I wanted to offer stock as an incentive to executives, I'd probably make it a contractual obligation to hold said stock until 730 days after retirement, resignation, or sacking. It's hard to orchestrate a pump-and-dump scheme two years after you leave.
Or at least they should not have the right sell them as long as they are in the employ of that company.
In theory, you want to have your senior leadership financially invested in the success of the company.
In practice, it creates a perverse incentive.
If I wanted to offer stock as an incentive to executives, I'd probably make it a contractual obligation to hold said stock until 730 days after retirement, resignation, or sacking. It's hard to orchestrate a pump-and-dump scheme two years after you leave.