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Memo: Zoom plans to cut back on stock-based compensation, saying equity has been issued at a rate that is "not sustainable", joining peers like Salesforce (@brodyford_ / Bloomberg) https://t.co/3ezNW0m4IF 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/e1xKwgYtCJ
Zoom plans to reduce stock based compensation (SBC) by eliminating annual equity grants and reducing stock offered to new hires. The company has said this practice is unsustainable. SBC lowers the stock price via dilution which then forces companies to engage in stock buybacks. https://t.co/BOV2WYxvSX
Software companies finally getting religion on equity dilution from SBC Zoom is phasing out annual equity performance plan and reducing new hire equity grants Salesforce, ServiceNow, Workday etc doing similar https://t.co/bOMWG4dXQ9
Zoom is the latest technology company to reduce stock-based compensation (SBC) for its employees, joining peers such as Salesforce, ServiceNow, and Workday. The company plans to phase out annual equity performance plans and reduce the stock offered to new hires over the next two years, citing the practice as unsustainable. This move is part of a broader trend in the tech industry where companies are addressing equity dilution caused by SBC, which can lower stock prices and necessitate stock buybacks.
