"Locked down, exploited and mistreated - FinalCall.com News" - Stock Options Cause Prisoner Abuse...4 Jan 2010
Locked down, exploited and mistreated - FinalCall.com News
WOW WOW WOW - Stock Options Now Case Prisoner Abuse! This story is about prison abuse, but somehow, like the collapse of the Dotcom boom, the housing market and the global economy (and perhaps the lack of world peace) it seems that the abuse can be traced back to the grant of stock options...
"Back in the day, prisons used to have their stock prices posted in
the front of the facilities, because guards had employee stock options,
according to Alex Friedmann, associate editor of
Prison Legal News and
president of the Private Corrections Institute, a non-profit advocacy
group that opposes the privatization of prisons. He spoke of his past
experience of 10 years of incarceration.
“When the guards came into work, they could see how well the company
was doing ... so they had a vested interest to make sure that the
company did well, so that meant cutting back on costs, so if you had to
screw prisoners out of something or remove something from them to save
money and increase your bottom line, that's what you would do. ... It
went along the lines of a for-profit industry, you know, ‘These are
little money signs, just $45 a day per diem that we make for keeping
them in prison, so it's not really a person, just a number with a dollar
sign in front of it,' ” Mr. Friedmann said.
But soon employee morale suffered when the stock spiraled downward
and people came to work only to find out that their entire savings had
been wiped out, he said."
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I volunteer in the prisons. Wasn't until I read this article that I associated employee ID#s with the numbers the inmates carry (CDC# or California Dept. of Corrections!) Almost makes you think we're all incarcerated in some fashion??
Stock options and prisons, whats next!??? Well, they've got a few executives incarcerated now, right? Unbelieveable!
Interesting story, thanks. Obviously this person quoted would have selected any type of pay-for-performance for guards that did not result in a good payout.
For profit-schools used stock grants, too, as have other industries that you would not think of as focused on using incentive-based pay. There was a time, back when we started www.myStockOptions.com, where stock options were the "coin of the realm" for everyone. Now it's probably just the warden/sheriff and his/her deputies that gets some type of equity grant.
I would be curious to know if they moved to restricted stock, cash bonuses, or just dropped this effort at incentive pay.
Bruce,
Your posting reminded me that I used to have a client that was a publicly-traded, national group of funeral homes. I certainly hope that their stock options didn't motivate them to do anything to "help" their business.
Stock Options exercises may be like Soylent Green!!!!!!!
And yet the underlying point that prisons should not be operated as potentially profit-making businesses is completely valid.
Absolutely, they should be in the business of helping those who are locked up find a better way. It's another kind of profit, one we'll all be richer for! I'm doing my part!