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Because profit on paper is very malleable. See: Hollywood Accounting. Stock compensation that vests over time both gives an incentive to stay, as well as a dire
by rpmisms 5y ago
Because profit on paper is very malleable. See: Hollywood Accounting. Stock compensation that vests over time both gives an incentive to stay, as well as a direct stake in the growth of the company, rather than a bonus program that can be removed at any time.
- s1artibartfast 5y agoIncentive to stay may or may not be a good thing, especially in the context of a retail job. A stock plan can also be removed just as easily. Last, publicly traded companies have well defined definitions of profit, which negates most if not all of the Hollywood accounting issues, where a movie might have 20 legal definitions of profit.