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Shares of the company they work for would incentivize them to care about the company. Shares of other public companies means no skin in the game. A day trader
by swagasaurus-rex 2y ago
Shares of the company they work for would incentivize them to care about the company.
Shares of other public companies means no skin in the game. A day trader cash out whenever they want and wipe their hands clean of any adverse effects made by the company in the name of growth.
- eru 2y agoThe day trader needs to find a greater fool for that to work. Shares prices already reflect an estimate of the long running fate of the company.
- konschubert 2y agoIt's true, which is why I think it's good to make shares part of the compensation. That being said, employees already have skin in the game because they want their company to survive so they keep their job. When a company goes belly up, employees with shares are worse off than those that bought shares in other companies instead.
- lolc 2y agoThe reason I own shares of my company is that I want to have a say in where it goes. Profit sharing is a nice side effect.