The last two conditions ensure the creditor's calculus to remain unchanged and the first one implies that one can neglect tax effects on shareholder level caused by constructive dividends.
In the end, he said, there will be an effect on shareholders.
The conduct usually had a minimal effect on shareholders, centering mainly on disclosure about an obscure part of a company's financial statements.
Two years later, the company said its compensation committee included same-store sales as one of its benchmarks "because it believed that good performance relative to these metrics is important for our overall financial performance and, therefore, is likely to have a positive effect on shareholder returns".
While increasing vesting horizons from, say, three to five years may not be as politically alluring to voters as a rant about the level of pay, it will likely have a much greater effect on shareholder value and society.
"Going-private transactions create opportunities for shareholder abuse and can have coercive effects on minority shareholders," said Antonia Chion, an associate director in the S.E.C.'s division of enforcement.
A confounding effect of shareholders is in the form of shareholder concentration.
But some investors argued that Mr. Khodorkovsky was partly to blame for the state's threatened seizure and for its effect on minority shareholders.
In a statement Tuesday, a Bank of America spokesman said the bonuses would not have had a big effect on the shareholder vote.
Result: dismal returns on shareholders' equity.
