RICH EXECUTIVES ARE MORE LIKELY TO BE INDICATED FOR INSIDER TRADING

Executives who are indicated for insider trading tend to be just as rich as or richer than other top managers. In fact, the likelihood of being indicated on this charge increases with compensation and wealth, according to a study of 52 accused executives. The motive for the crime thus may have more to do with hubris or company culture than a desire for economy. The benefit that Martha Stewart would have received from her alleged insider trading was just 0.007% of her $650 million net worth in 2001.

Harvard Business Review
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