If I’m understanding correctly, a company at any given time has a fixed number of shares that split the ownership of that company, thus if a CEO is paid with shares someone else must be giving up their shares.
In: Economics
The bottom line is that in almost all cases a company has not distributed all it’s shares. When a company is set up or funded, there is always pool of shares (maybe even 25% of the company) that is set aside for compensating regular employees and senior execs like CEOs for years to come.
Issuing more shares is a big deal and it doesn’t happen very often. Usually it happens when the company needs a new round of funding. Existing shareholders get screwed so it’s a big deal.
More commonly, if needed companies will do a stock buy back and hold those shares to distribute. But still that’s not super common.
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