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Can companies just dilute or do they need to buyback shares from the market for this stock based comp? The latter does have a real cost.
by fred_is_fred 6y ago
Can companies just dilute or do they need to buyback shares from the market for this stock based comp? The latter does have a real cost.
- Denzel 6y agoThat's the crux. :) I don't have an answer for you, but that seems to be why the different sides are talking past each other in this discussion. If a company can just dilute, there's no real tangible expense outside of the company transferring value from the shareholders via dilution. If a company has to buyback shares from the market, then I absolutely agree that stock-based compensation needs to be recorded on the income statement as a real expense.