Tech firms shifting focus to cash paychecks as stock compensation wanes - PRESS AI WORLD
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Tech firms shifting focus to cash paychecks as stock compensation wanes

share-iconPublished: Friday, January 03 share-iconUpdated: Friday, January 03 comment-icon3 months ago
News sources:
REUTERS
Tech firms shifting focus to cash paychecks as stock compensation wanes

Credited from: REUTERS

  • Technology companies are reevaluating their reliance on stock-based compensation as they enter the new year.
  • Many startups and mature tech giants have been compensating employees with shares, which is becoming less viable.
  • Since 2022, the tech sector has seen over 500,000 layoffs, leading to decreased incentives for generous stock packages.
  • Investors are now prioritizing profitability over growth, pushing companies like Salesforce to manage dilution concerns.
  • As scrutiny increases and interest rates remain high, tech firms must adapt to paying in cash.

For more details, visit the original article at Reuters Breakingviews.


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