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You withhold the shares until after a waiting period. You stay a year and don't screw up royally, you get invited to the employee participation program. Imagine
by gosub100 2y ago
You withhold the shares until after a waiting period. You stay a year and don't screw up royally, you get invited to the employee participation program. Imagine that? Give the poor something to look forward to? Preposterous, right?
- p_l 2y agoAnd then they give that stock price is mostly vibes based had little relation to performance, and it's unreliable monopoly money unless you happen to own a lot of it so it can be collateral in a loan. Additionally stock based compensation creates incentives to work towards raising the stock price not actually performance. All of that is why back when Hewlett-Packard was still run by Hewlett and Packard they banned stock plans and instead introduced profit sharing