Population Statistic: Read. React. Repeat.
Monday, July 12, 2021

For companies wary of employee-stock packages that dilute overall corporate shares, phantom stocks — a promise to pay a cash bonus that is directly tied to the value of a company’s stock — are the new incentivization option.

Because it turns out that the worker ants aren’t particularly interested in equity anyway:

Research has also shown that employees who are rewarded with actual shares tend to sell it shortly after they take hold of them. Companies, as a result, have less of a need to pay employees with stock if their workers aren’t holding on to the shares.

Not surprising, in this post-crash volatile market, that they’d want cold hard cash instead of company paper that (sadly) could be worth pennies tomorrow. A win-win all around.

The corporate world could always up the ante in this fiscal nebulousness: Instead of tying bonuses to actual stock prices, peg it to the company’s shadow revenue. Phantoms thrive in the shadow realms, after all.

by Costa Tsiokos, Mon 07/12/2021 02:39pm
Category: Business
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