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

Usually a company has a a bunch of their own stock, otherwise they’ll have to buy them from the market. Another option is to issue new shares, but that’s usually quite excessive.

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