- Stock Based Compensation or SBC for short, has exploded over the last decade, creating massive wealth for employees and executives, but it is an often overlooked expense for shareholders.
- In this article, I would like to go over the basics of stock based compensation and compare current market darlings' SBC expense both among themselves along with mega-cap tech brethren.
- While high SBC is certainly not a death sentence, as shares come down from recent highs, the potential for massive dilution is certainly increasing.
For further details see:
Stock Based Compensation: A Comparison Of The Market's High Flyers