Hacker Read

spacehome · 2018-09-08 02:59:26+00:00

They’re also a transfer of wealth from shareholders to employees (who have kids).

marrone12 | karma 568 | avg karma 2.7 · | 2021-04-14 18:50:08+00:00

Also to provide liquidity to their employees.

erichocean | karma 5149 | avg karma 2.11 · | 2022-11-03 23:43:32

Yes, it's a way for companies with massive profits to route them to their employees (read: executives), not their shareholders.

kgwgk | karma 14700 | avg karma 2.94 · | 2018-08-23 18:05:43

Extravagant handouts to the people who own the company, you mean?

WilliamEdward | karma 372 | avg karma 0.69 · | 2018-07-27 14:52:09

Companies actually do this behind the scenes. They list individual employees as financial assets.

jonny_eh | karma 10706 | avg karma 3.1 · | 2018-02-28 00:50:24

They distribute/track/convert shares/options to employees on behalf of the companies that pay them.

0xedd | karma 331 | avg karma 1.48 · | 2022-09-05 19:22:30

This iteration of the practice. The highest revenue stream is children. Companies making billions off them won't stop at trivial hurdles.

Source: workplace.

reply

mgfist | karma 550 | avg karma 2.62 · | 2024-05-12 07:42:46

I think "wealth transfer" is a poor description. Really it's just a way to ensure they have enough money to compensate (very highly) less tenured employees, and to align incentives better (i.e. not just being paid because you're already rich and tenured).

UK-AL | karma 3249 | avg karma 1.9 · | 2016-01-12 10:20:19

Not only yes, but for certain types of company it considered a benefit.

rco8786 | karma 7116 | avg karma 3.48 · | 2017-01-13 14:12:34+00:00

They pay pretty competitive salaries as well. The stock grants will eventually roll off as people's plans vest and are replaced with smaller ones(new employees have been getting smaller ones for a while already)

EliRivers | karma 5862 | avg karma 1.69 · | 2016-08-17 17:53:57

I applaud it very much. When a company has money to give to someone, they can give it to shareholders or employees (or just the bosses who set their own remuneration). It's nice to see it going to employees. It's not just good PR; it's good. I hope it is a trend, and I'm speaking as someone who currently makes more money as a shareholder than from my job.

kgwgk | karma 14700 | avg karma 2.94 · | 2019-11-05 07:42:27+00:00

They pass the cost directly onto the shareholders :-)

muzani | karma 8388 | avg karma 1.47 · | 2019-11-06 08:48:32+00:00

To be fair, in giant companies, they are no longer lottery tickets, and often quite valuable.

edmcnulty101 | karma 623 | avg karma 0.68 · | 2022-03-24 08:28:19

The company profit, the executives, and the shareholders will take a share of paying for it as well.

syockit | karma 244 | avg karma 1.12 · | 2019-12-31 22:33:04

And when the shareholders want to maintain their after-tax income, they can certainly pass the buck to the customers or the employees, to a certain extent.

phone8675309 | karma 1703 | avg karma 1.55 · | 2023-11-08 11:45:27

But some of the companies they own might benefit from it.

Tsagadai | karma 1056 | avg karma 3.0 · | 2014-02-12 22:49:01

In a word, shareholders. Many won't benefit but there is money in this sort of deal and it is likely going to the business owners.

everdrive | karma 6844 | avg karma 4.01 · | 2021-05-05 12:22:48

Then why do the companies give them out?

oacgnol | karma 427 | avg karma 2.85 · | 2012-04-16 17:18:36

Except it's not just a job, in all likelihood they get a payout from being acquired as well.

carbocation | karma 14185 | avg karma 4.28 · | 2013-09-20 15:43:35+00:00

You could also contribute to the company's rent payment. It would have a similar wealth transfer effect.