Here is how I see it. The company and its shareholders have benefitted for the past some odd years not paying much in salary, which helped out cash flow and reduced the amount we had to borrow and/or finance. The downside to that is having to compensate with stock. Additionally, going forward, we will have to retain those people and it is much cheaper and again helps our cash flow, to do it with stock instead of cash bonuses or heavy salaries.

As some have mentioned, all the shares aren’t given out immediately, and most likely, the ones that are, vest over some period of time.

This is an absolute non issue to me. In fact, if anything, it is a positive. I want to invest in a company that cares about retaining and rewarding top talent. And if paying them in stock is a win win for both the company (helping cash flow) and employees (who make out on runs to the upside), I am all for it.