"Far too many executives chase the ‘four Ps’ – pay, perks, power, and prestige – at the expense of shareholder value,” said T. Boone Pickens. This rings especially true in the world of share-based compensation under ASC 718 and IFRS 2. While intended to reflect real economic costs, such expenses are often manipulated or ignored. The recent Tesla case illustrates the danger: CEO compensation packages so large they could wipe out years of profits, leaving shareholders holding the bag.

“The CFO asks the CEO, ‘What happens if we invest in developing our people and they leave us?’ The CEO responds, ‘What happens if we don’t, and they stay?’”