Hacker Read

kgwgk · 2019-11-05 07:42:27+00:00

They pass the cost directly onto the shareholders :-)

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.

eklavya | karma 1293 | avg karma 1.72 · | 2015-03-23 04:51:12

Oh, thanks. Didn't know that. I wonder if it's so just because these big companies control almost all the cash flow or there are costs which increase linearly with the paid amount.

belltaco | karma 13576 | avg karma 4.11 · | 2023-09-21 20:56:01

Correct, they'd pay the companies via corp-to-corp.

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.

branchless | karma 1845 | avg karma 1.29 · | 2016-12-02 23:46:40+00:00

Surely salaries have to be taken into account? If they fill their boots ratger than shareholder profits customers still pay.

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.

giantg2 | karma 18870 | avg karma 1.42 · | 2023-04-30 12:06:53

True, but are they actually offsetting the negarive costs by doing things like that, or are the companies protecting their profits?

randycupertino | karma 5409 | avg karma 4.05 · | 2021-11-10 14:11:52

It's more of a funnel system where they take investor $$ and channel that to employees and in discounts to customers.

fatherzine | karma 427 | avg karma 1.62 · | 2023-11-20 11:22:17

Upper management is usually compensated with financially meaningful ownership stakes.

tim333 | karma 15551 | avg karma 1.53 · | 2022-01-15 11:56:44

I guess it does to an extent with things like share ownership. Although there are ongoing costs for the various peoples salaries at the institutions involved.

cies | karma 7348 | avg karma 2.3 · | 2018-11-15 09:12:06+00:00

Only shareholders. Mgmt is just another expense.

kevviiinn | karma 605 | avg karma 0.77 · | 2023-04-06 13:07:19

They get paid for lining the pockets of shareholders as effectively as possible quarter to quarter

foogazi | karma 1307 | avg karma 0.87 · | 2024-03-10 21:03:05

> companies pay for everything

Where do they get the money from ?

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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.

rStar | karma 244 | avg karma 0.75 · | 2021-11-08 05:35:17

they do get profit sharing though

Bakary | karma 4340 | avg karma 2.32 · | 2017-06-12 06:50:08+00:00

As usual it will be pocket change for the company, and essentially part of the cost of doing business.

spacehome | karma 1865 | avg karma 2.23 · | 2018-09-08 02:59:26+00:00

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

flukus | karma 10283 | avg karma 1.36 · | 2020-02-14 01:51:11+00:00

They kind of sort of do via tax. The tax helps pay for the infrastructure that allow their employees to get to work, along with contributing to a healthy and educated workforce.

If they paid directly I think it would result in a two (or more) tiered transport network, great for people in some jobs/companies but terrible for most.

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