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bobjoylove t1_j6ktn4g wrote

Reply to comment by shaneknysh in ELI5: What does it mean when a company buys back stocks and why is it frowned upon? by lilly_kilgore

This is true but many companies include stock as compensation, releasing it over the years to retain staff using ‘golden handcuffs’. So it does have a way to may it back to the staff

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Rishfee t1_j6kuwrd wrote

It may be common in certain fields, but on the whole, stock options are not what I would consider a common component of employee compensation, at least here in the US.

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shaneknysh t1_j6kw73p wrote

As a recipient of stock rewards as an employee they are not a great reward. Like company scrip the stock rewards to staff are a cheap way to reward staff costing the company pennies on the dollar. And every single one I've received the stock was non voting and diluted.

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bobjoylove t1_j6kwcoo wrote

In tech companies stock awards can more that double the amount you get paid every year. Often triple you base salary.

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shaneknysh t1_j6l6334 wrote

What tech companies did you work for? My stock options never came close to 25% of my base salary.

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bobjoylove t1_j6n3wup wrote

Not revealing any personal data, but both Fintech and Silicon Valley is paying staff this way. The annual stock award is performance based, and except for the last 2 years there has been a bull market that also swells the award granted 4 years ago.

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