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> and not a penny of that increase went to the company. I think they might have raised a bit / issued more shares since IPO (not sure) Slightly different ques
by MuffinFlavored 6y ago
> and not a penny of that increase went to the company.
I think they might have raised a bit / issued more shares since IPO (not sure)
Slightly different question: if the stock price increasing doesn't really gain the company any money, why are board executives typically concerned about share price performance? Obviously because they get paid in grants, but... are there any other reasons that actually benefit the company itself instead of the shareholders?
- s1artibartfast 6y agoAs I mentioned above, Tesla has issued about $6 billion worth of stock since the IPO, So it is not like there is absolutely no benefit to the company, but is just a small fraction of the amount of money that pours into the stock. >if the stock price increasing doesn't really gain the company any money, why are board executives typically concerned about share price performance? Obviously because they get paid in grants, but... are there any other reasons that actually benefit the company itself instead of the shareholders? Board executives represent the interests of the shareholders, not the company. The shareholders literally own the company, and can call a vote to replace the board members. Hell, if the shareholders think it is more valuable to liquidate the company and cash out, they can do it.