eli5: Do any of the stocks and investing go to the company’s payroll?

Question

I know stocks are traded to raise funds and help operate the business better, but can companies use the money to directly pay their employees? Or does all payroll come from revenue?

In: 8

Answer 1

Payroll comes from revenue, but if the company pays employees with stock options, that portion of pay is pretty effectively coming from shareholders (the percentage of the company they own is reduced by the shares granted when the options are exercised).