EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Thursday, July 14, 2005

Short-term Incentives

From the Silly Economist column of The Smart Economist:

MORGAN STANLEY'S PROFLIGACY
On March 28, Stephen S. Crawford was appointed co-president of Morgan Stanley, an investment bank. Under an agreement reached June 30, Mr Crawford would receive a hefty $32 million severance package if he decided to resign by August 3.
- On July 11, Mr Crawford resigned... surprising, isn't it?

Pretty funny on the face of it. What is behind that arrangement? And why now (and not on August 2nd?)