What does a company gain by offering employees shares in the company?
May 29th, 2009 | by Rick |
Brenda B asked:
My husband was given 5 shares of his company in 2007. His employer is claiming that the business only profited $60k. Can an employer be hiding assests? Is there financial benefits by offering employees shares?
XAVIER
My husband was given 5 shares of his company in 2007. His employer is claiming that the business only profited $60k. Can an employer be hiding assests? Is there financial benefits by offering employees shares?
XAVIER
3 Responses to “What does a company gain by offering employees shares in the company?”
By MARC on Jun 1, 2009 | Reply
AUGUSTINE
Benefits of giving employees stock: Employees benefit by sharing in the profits of the company. The company benefits by having the employess being part owners in the company. They may be more productive if they have a share in the company. There may be a tax benefit to the company. Can a company hide assets? I suppose it is possible. World Com added expenses to assets for years, so it is certainly possible to reverse the process and expense assets instead of capitalize them. Some accountants can be very clever, especially if their bonuses depend on it.
By ADRIAN on Jun 3, 2009 | Reply
DANE
By LAZARO on Jun 5, 2009 | Reply
DANE
He should look up the companies SEC quarterly filings (which are online by law). You can find out a lot of things there (executive salaries & compensation, etc). It probably has there whether an independant arbiter looked over the books.