News for hackers. Stuff that matters.

A comment on Shopify lets staff decide cash-stock pay mix as shares dive. Parent comment

Re:Shopify lets staff decide cash-stock pay mix as shares dive by joshl32532 on Friday September 16, 2022 @03:09PM (#32870656)
> When public companies give stock to their employees, they dilute the stock as much as if they issued stock and sold it. So the cost of that compensation is the same as if it were in cash.

Companies DO prefer to grant RSU instead of cash bonus, because it'll provide liquidity to their stock and make employees engaged with the company's performance. One of Netflix's benefit is they're cash heavy in their compensation, which SWE do prefer.

The dilution is not a problem, since they'll buyback stocks anyway.

[ Parent | on HN ]
Re:Shopify lets staff decide cash-stock pay mix as shares dive by wikfwikf on Friday September 16, 2022 @04:34PM (#32871683)
Buybacks are not alchemy; buying back stock just uses the same money that you saved when you issued stock instead of paying in cash.

Of course, the stock price might have gone down, but also it might not. Companies don't usually time buybacks right to buy stock cheaply.

[ Parent | on HN ]
Re:Shopify lets staff decide cash-stock pay mix as shares dive by peyton on Friday September 16, 2022 @08:49PM (#32873798)
Oh, no, generally buybacks are timed strategically.
[ Parent | on HN ]