Let's get educated about the American welfare programs

[Loren Pechtel]

The point is it would have been easy for him to get the money from stock rather than from the company. CEOs are almost never actually paid at that level, the high numbers you here are from performance-based stock options.

"performance based"

Yup. Doesn't matter whether the performance is good, bad, or abysmal. "Performance based" indeed.

Reality: What I'm talking about is awards of stock options at a certain strike price. The price is always well above the current share price. If the share price doesn't go above that price the options are worthless. (In theory you could still exercise them but it would be cheaper to simply buy the same shares on the open market.) The big numbers that make the news are from people collecting big-time in situations where the share price is way above the strike price--and that only happens when the company has performed well.

 

[Jolly_Penguin]

The OP to this thread is excellent. Thanks for posting it.

 

[Worldtraveller]

LOL. LP thinks stock price is related to how well a company is doing!

 

[Loren Pechtel]

LOL. LP thinks stock price is related to how well a company is doing!

It's related to how investors believe the company is doing. Obviously, that's not always reality. (And it's why I would like to see such compensation be limited to stock shares to be delivered down the road--tie it to long term performance, not short term performance.)

 

[KeepTalking]

Distributing such shares has no cost to the workers but it does have a cost to the other shareholders.

Not once the workers have shares as well. Then they would get to equally feel the pain that non-worker shareholders are experiencing by having more assets. I'm sure they would hate that.

You're not making sense unless you think the shareholders are the same as the workers.

If you give them shares for doing their jobs, like you give the board members whether they do their jobs or not, then the workers are shareholders. Make sense now?

 

[Loren Pechtel]

You're not making sense unless you think the shareholders are the same as the workers.

If you give them shares for doing their jobs, like you give the board members whether they do their jobs or not, then the workers are shareholders. Make sense now?

In other words, pay in equity. Note that a worker could just buy shares and accomplish the same thing. What's done with the top people is they are given shares at a price well above the current market--it's only worth something if they grow the company to that value. It's a form of automatic performance bonus.

 

[Worldtraveller]

You're not making sense unless you think the shareholders are the same as the workers.

If you give them shares for doing their jobs, like you give the board members whether they do their jobs or not, then the workers are shareholders. Make sense now?

In other words, pay in equity. Note that a worker could just buy shares and accomplish the same thing. What's done with the top people is they are given shares at a price well above the current market--it's only worth something if they grow the company to that value. It's a form of automatic performance bonus.

[Citation Needed]

What company does this. Can you provide any evidence?

Having a fair bit of experience with stock options as a bonus, this has definitely not been how it worked in my experience. So as usual, I ask you to put up or shut up.

 

[Loren Pechtel]

In other words, pay in equity. Note that a worker could just buy shares and accomplish the same thing. What's done with the top people is they are given shares at a price well above the current market--it's only worth something if they grow the company to that value. It's a form of automatic performance bonus.

[Citation Needed]

What company does this. Can you provide any evidence?

Having a fair bit of experience with stock options as a bonus, this has definitely not been how it worked in my experience. So as usual, I ask you to put up or shut up.

Look up how stock options as compensation work.

 

[Worldtraveller]

In other words, pay in equity. Note that a worker could just buy shares and accomplish the same thing. What's done with the top people is they are given shares at a price well above the current market--it's only worth something if they grow the company to that value. It's a form of automatic performance bonus.

[Citation Needed]

What company does this. Can you provide any evidence?

Having a fair bit of experience with stock options as a bonus, this has definitely not been how it worked in my experience. So as usual, I ask you to put up or shut up.

Look up how stock options as compensation work.

Like I said, I have direct experience receiving stock options as a bonus, and unless something significant has changed since the late 90s, that is not how they worked.