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The shareholders would pay for Musk's pay package by having their shares diluted. It's not as if Tesla has to provide any money for that, so it's not really com
by FiberBundle 2y ago
The shareholders would pay for Musk's pay package by having their shares diluted. It's not as if Tesla has to provide any money for that, so it's not really comparable to giving employees a raise.
- AnthonyMouse 2y agoMoney is money. In theory they could dilute the shareholders by issuing new shares into the market and use the money to pay employees more. But this fails to identify what magic is to be used to cause them to want to do that. Employers (and employees) generally have a pretty good idea what the market price is for a particular job. If they have to fill 100 positions and offering $25/hour causes them to get 100 qualified applicants who accept the position, they could offer $35/hour, but this is like saying that the employees could accept $15/hour when another employer is offering $25. Some explanation is required for why they would.
- jjav 2y ago> so it's not really comparable to giving employees a raise Employees can (and most often are) paid in those company shares as well, so no difference.