Twitter CEO Gives 30% of His Stock To Employees

Discussion in 'The Cocktail Lounge' started by Rainman, Oct 23, 2015.

  1. Rainman

    Rainman Senior Investor

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    The sure-fire way to preemptively stop brain drain from Twitter? The CEO gave a third of his shares amounting to 1% of the company [about $200M worth of shares] to their employees.

    http://www.bloomberg.com/news/artic...-third-of-his-twitter-stock-back-to-employees
    Great way to motivate employees.
     
  2. Susimi

    Susimi Senior Investor

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    It's a pretty nice move and although it only looks a very small percentage it shows that he values his employees which is a really great for the public image of the company.

    Maybe it's just me but I can see being given a share of the company will replace being given a wage bonus or a raise in the future.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Rewarding employees with company shares is an age old trick. though usually it's the company issuing new shares instead of the CEO giving some of his... that part is what makes this worthy of a news article. Anyway, like I said it's pretty common practice nowadays but I'm glad to see it done this way too. Hope it works out well for both the comapany and the employees!
     
  4. L_B

    L_B Well-Known Member

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    This was a wonderful way to show his appreciation for his employees. It is nice to feel like you are valued for the work that you do. This is also a great way to keep you work force motivated and to do well for the company.
     
  5. missbishi

    missbishi Well-Known Member

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    Gifting shares to employees certainly isn't a new thing but it's always a nice little bonus for the employees. I'm sure it does a great deal for staff morale and productivity - after all, if they now have an interest in the company's performance then I suppose they're more likely to workt o their full potential.
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    Exactly. And while they probably realise that though their own productivity is meaningless when it comes to how well the company does, it still subconsciously makes them want to work harder since they are kind of "working for themselves" or alternatively they feel happier about working there (which has been proven to increase productivity) since they feel more attached to the company. I know that happens with me.
     
  7. Jason76

    Jason76 Well-Known Member

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    Henry Ford did something similar back in his day. He decided the company would share it's profits with the employees. As a result, the wages for car workers were much higher than that for similar occupations. In my opinion that was pretty cool. However, I didn't care for Ford's ridiculous negativity about Jewish people.
     
  8. pwarbi

    pwarbi Senior Investor

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    I also think it's a nice gesture but while I'm not saying there is an ulterior motive behind it, these gestures of grand will often do sometimes come with a catch to them.
     

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