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In your example, Apple would not be absolutely fine. Key employees are compensated largely in stock and many would start looking for other jobs if their trailin
by Ninjak2 7y ago
In your example, Apple would not be absolutely fine. Key employees are compensated largely in stock and many would start looking for other jobs if their trailing four years of RSU grants suddenly became nearly worthless. Now Apple could step up and issue additional RSUs to employees to keep them onboard, but that has consequences too. So you can see how a tanking stock price is extremely disruptive, even if you don't need to raise capital.
- firebones 7y agoIssuing additional RSUs for retention is something which, with their positive cashflow, they absolutely would do (handled by share repurchase) if the stock price dropped to the point it made rational sense. Who wouldn't stick around at Apple if they're printing money and your RSUs have a basis of $1?