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Creating new shares dilutes the existing share value. Paying employees in shares means you're diluting the stock value every time. Of course, for most publicl
by three_seagrass 6y ago
Creating new shares dilutes the existing share value. Paying employees in shares means you're diluting the stock value every time.
Of course, for most publicly traded companies there are so many outstanding shares that this is negligible.
- MiroF 6y agoI thought most executive compensation was paid out of pre-allocated shares.
- three_seagrass 6y agoMost employees are not executives.
- MiroF 6y agoIf you scroll up, the question was "Aren't executives mostly paid in stock and bonus?"