4 ms·
Stock based compensation is reported as an expense in income statements, so, you're wrong.
by s17n 9y ago
Stock based compensation is reported as an expense in income statements, so, you're wrong.
- danieltillett 9y agoThis is why I said ignorant shareholders.
- walshemj 9y agoAs opposed to the use of multiple share classes with different voting rights?
- danieltillett 9y agoWell yes another con of the shareholders. Why shareholders invest in companies doing this sort of stuff is beyond me. It is not as though they are they actual owners of the business or anything.
- s17n 9y agoI agree with you there (one reason I sell all my goog)
- s17n 9y agoTo "ignorant" shareholders, there's no difference between stock and cash compensation.
- danieltillett 9y agoIn the long run this is true, but in the short run ignorant shareholders overlook the dilution and just focus on the reported cash profit. I do say I find it interesting that people even think that if you are going to be paid $x in total compensation it is better to be paid $x-y cash and $y in stock. I guess this sort of magical thinking is why companies do it.
- s17n 9y agoThat's what I'm saying, the "reported cash profit" includes stock-based compensation as an expense exactly like regular salaries. You don't even have to know what dilution means.