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If my understanding of finances is correct, the total compensation numbers you're citing are almost meaningless from a cash flow perspective. Most of the compen
by jcranmer 3y ago
If my understanding of finances is correct, the total compensation numbers you're citing are almost meaningless from a cash flow perspective. Most of the compensation is in stock, and issuing new stock as compensation doesn't really cost the company anything. Buying back the issued stock is where the stock compensation would have a negative impact on cash flow.
- guru4consulting 3y agoI guess it DOES cost company something.. goes directly to their profit/lost statement (of course if they are sincere to follow GAAP standards). And I do not understand the rationale when people say salary alone matters and stock compensation does not matter until the gains are realized. It still is an asset even if the values fluctuate. I will be very happy to take the risk of having no salary and millions of stocks as compensation, especially for a well established market leader like Unity.
- lotsofpulp 3y agoAnd then you look at your balance when you go to sell and realize it is not worth much. https://www.macrotrends.net/stocks/charts/U/unity-software/market-cap https://www.macrotrends.net/stocks/charts/U/unity-software/m... -28% annual return since going public. https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ A relatively riskless investment in sp500 would have earned 11%+ per year since 2019. https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/