Management is one of the key factors to consider when looking for companies to purchase, and that involves analyzing the CEO’s compensation. You must understand how management gets compensated, and know that they are getting paid for building a better company—not for having a better stock price. This week on InvestED, Phil and Danielle discuss why it’s important for CEOs to get compensated for having low debt, high free cash flow, high owner earnings, and expanding the moat to protect against competition.
For show notes and more information, visit www.investedpodcast.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
InvestED: The Rule #1 Investing Podcast