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Dividend and stock buy backs are mostly the same thing - the company returning money to the market, but yeah in the specific case of management stock options th
by zby 8y ago
Dividend and stock buy backs are mostly the same thing - the company returning money to the market, but yeah in the specific case of management stock options they might have different effects.
As for involving workers in the company governance - this is common in Europe, I know that at least in Germany and Norway at some size of the enterprise the workers elect representatives for the board.
- dharma1 8y agoYes, though dividends are taxed differently and usually share price rather than dividend issuance is linked to performance related options/bonuses for management. I think these two things create an artificial preference for share buybacks, and sometimes can influence short term gain seeking (management financial incentives especially are not always aligned with 5-10+ year time span). I think a board seat for employee representative is one way - I'm interested in broader direct democracy type approaches of corporate governance. Blockchain and DAOs feel like an interesting match for this, since many types of corporate activity - bookkeeping, shares (tokens) and token holder voting can be done on the blockchain. We are exploring this with https://Aragon.one https://Aragon.one