Management teams often disguise poor capital allocation decisions (especially failed acquisitions and technology transformations) by selectively excluding those costs from their proforma compensation metrics, which is a major red flag for investor misalignment because it shows management is not holding itself accountable to shareholders in the same way.

causalpending

Speaker

Joseph Shapiro

Evidence Quote

if a management team is going to make an investment they should have to live with that investment just like all of us do

Source

The Compounders Hiding in Plain Sight | Joseph Shaposhnik on Finding Decade-Long WinnersExcess Returns
Created: 8/11/2026, 7:25:53 AM

My Notes

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