RE: Re: More shares for the big wigs.2 Sep 2022 16:36
Stock to executives isn't quite a straightforward as some may think.
On a personal note I have been in receipt of Company stock and known someone lose the lot.
Offering vesting is a benefit to both you and your company. Your company doesn't have to pay out as much in cash compensation, because shares of stock represent ownership in the company and not an actual cash payment to employees, decreasing the drain on cash flow. As an employee, you receive the benefit of either a potential windfall from vesting into an option or the direct benefit of vesting into shares. In addition, vesting encourages employee retention -- few employees voluntarily walk away from the compensation potential that vested shares represent.