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Last quarter, Amazon had 834M of depreciation, and 281M of stock-based compensation: 1.1 billion of non-cash deductions from revenue. They made capital expendit
by MaysonL 13y ago
Last quarter, Amazon had 834M of depreciation, and 281M of stock-based compensation: 1.1 billion of non-cash deductions from revenue. They made capital expenditures of 1.03 billion. They ended the quarter with about $100 million more cash than they started with.
- cperciva 13y ago281M of stock-based compensation ... ended the quarter with about $100 million more cash than they started with. This looks like a loss to me. They could have sold $281M of stock and gotten $281M in cash; instead they ended up $181M short of that.
- michaelt 13y agoIn general when you're a CEO or board member you'll make more money by granting yourself $x million in stock than you'll make by paying a dividend of $x million which has to be shared among all investors.
- dlgeek 13y agoBezos doesn't take any stock-based compensation and takes only a minimal salary (less than 90K/year). He makes money by increasing the value of his existing stock.
- encoderer 13y agoNot to mention, there are tax benefits to stock based comp. First, you often have the choice of when to exercise the stock which can make a world of difference especially with AMT, and second, if you hold for a year you'll pay the long term cap gains rate. For lower income people (hehe in this case that would be people who make less than $400k) that's still 15% which is an incredible discount. For higher income folks it's now about 23% but, again, that represents a tidy discount against their marginal tax rate.