It’s mostly because of stock awards as part of compensation packages.
If you get $50,000 in equity each year and the shares are worth $20 when you were awarded them, then they balloon to $160, you just earned $400,000 for each year you held on to them. These numbers are all made up and just for reference, but this is what some of these hardware company employees experienced.
I was gonna say, isnt high employee stock compensatition common for pump and dump companies?
The pump would be useless if youre theyre the only one holding onto stock, and actual money keeps its value after the pop so you can’t give that to employees.
It’s mostly because of stock awards as part of compensation packages.
If you get $50,000 in equity each year and the shares are worth $20 when you were awarded them, then they balloon to $160, you just earned $400,000 for each year you held on to them. These numbers are all made up and just for reference, but this is what some of these hardware company employees experienced.
I was gonna say, isnt high employee stock compensatition common for pump and dump companies?
The pump would be useless if youre theyre the only one holding onto stock, and actual money keeps its value after the pop so you can’t give that to employees.