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And 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
by p_l 2y ago
And 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