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

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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

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Anonymous 0 Comments

A company will often own many shares of its own stock for exactly this reason, re: to give to employees as bonuses, sometimes as a sign on bonus, sometimes as a performance bonus. It’s why you hear about companies doing stock buybacks as well when the company has cash reserves.

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