Thursday, August 19, 2010
John Ferguson, the CEO of CCA, recently handed over some of his personal stock in the company so it could be distributed among employees, more than 150,000 shares. Sure that sounds like a nice gesture, but the stock he gave up has a strike price way above the current value of the stock on the open market. Its strike value is $26 per share, which the company hasn't traded at in about 2 years. Basically what that means is the stock he gave out to employees is less valuable than CCA stock would be if they just bought it on their own, so he essentially dumped his bad shares on his employees. This is the same CEO who exercised more than $11 million in stock options over the past year and still controls another $13 million worth of company stock. Classy move there, Fergie.