When a CEO receives stock shares for compensation, where do those shares come from?

92 viewsEconomicsOther

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

10 Answers

Anonymous 0 Comments

Outside the scope of ELI5 but companies either leverage treasury stock or derivatives which would allow them to provide the shares if the stock grant is in the money on vesting date.

You are viewing 1 out of 10 answers, click here to view all answers.