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by s1artibartfast 1188 days ago
stock proce isnt revenue growth.

IF comp is tied to revenue, it doesn't matter if the stock goes to the moon.

The stock goes up because investors think that revenue will go up if they pay fewer salaries.

2 comments

Profits, not revenue. But the point remains.
FairPoint, the article said Revenue so even layoffs won't help unless they shift there expenses from Devs to marketing or something like that
Higher stock value helps companies achieve things. See GME
For most companies stock value is meaningless in terms of achieving things. It doesn't put more money in their pocket to pursue development unless they do additional stock offering, which is very unusual for a mature company.
That's not true: from my understanding equity compensation plans fit in here, and that's the vast majority of companies (or really nearly all of them, at least for executive staff).