As to stock Compensation to the CEO, he does not h
Post# of 11803
(Total Views: 250)
Posted On: 02/29/2020 6:03:02 AM
Re: frankbell1964 #8718
As to stock Compensation to the CEO, he does not have to have his own money in the Company because he can issue as many shares or low cost options to himself, employees or the Board members as he wants.
You are 100% that this Company owes shareholders, and public Company does. There are a couple of reasons it is publicly traded;
1. it leverages stock traded in the public markets for financing arrangements. When shareholders see the shares outstanding increase the staggering percentages that it has you can bet most of that is financing related and not employee compensation. If this were a private Company do you think traditional lenders would finance tens of millions of dollars in losses management? The losses have no end in site.
2. While number 1 is the main reason, another reason is that stock is a vehicle for compensation when cash isn't. Also if the Company is a success, which I doubt it will) management benefits from equity without putting up any financial risk buying shares,
As far as the loan you wrote about, has it actually happened, Were the terms disclosed?
You are 100% that this Company owes shareholders, and public Company does. There are a couple of reasons it is publicly traded;
1. it leverages stock traded in the public markets for financing arrangements. When shareholders see the shares outstanding increase the staggering percentages that it has you can bet most of that is financing related and not employee compensation. If this were a private Company do you think traditional lenders would finance tens of millions of dollars in losses management? The losses have no end in site.
2. While number 1 is the main reason, another reason is that stock is a vehicle for compensation when cash isn't. Also if the Company is a success, which I doubt it will) management benefits from equity without putting up any financial risk buying shares,
As far as the loan you wrote about, has it actually happened, Were the terms disclosed?
(0)
(1)