Buy More Stuff, Says Juniper Board

There is a strange provision in Juniper CEO Scott Krien’s employment agreement. According to the Wall Street Journal:

Mr. Kriens’s bonus for this year is dependent on Juniper’s “entry into new businesses by means of acquisitions.” The board is serious: Without an acquisition, no Juniper executive will get a bonus, according to the filings.

It is unusual, because given the choice between getting a bonus for something you can’t control — sales — versus getting one for something you can control — buying other companies — you can guess what your average CEO is going to to do. Buy stuff, of course.

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