Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by danieltillett on Monday April 16, 2018 @02:19PM
(#16851380)
In the long run this is true, but in the short run ignorant shareholders overlook the dilution and just focus on the reported cash profit.
I do say I find it interesting that people even think that if you are going to be paid $x in total compensation it is better to be paid $x-y cash and $y in stock. I guess this sort of magical thinking is why companies do it.
Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by s17n on Tuesday April 17, 2018 @01:17AM
(#16855680)
That's what I'm saying, the "reported cash profit" includes stock-based compensation as an expense exactly like regular salaries. You don't even have to know what dilution means.
I do say I find it interesting that people even think that if you are going to be paid $x in total compensation it is better to be paid $x-y cash and $y in stock. I guess this sort of magical thinking is why companies do it.