Do you invest in companies offering ESOS? Somehow I have this feeling that ESOS is a way to steal from the shareholders.

starting i feel like you too
btw,after i think properly,the money that executive buying the share i going to the company asset,so
1.our share is (nipis)
2.our company asset is becoming more (tebal balik)

now i dnt care about that ompany got ESOS or not,but important is a continued growth company
cheer

If done carefully, it results in motivated employees which help the company perform better.

Retaining talent is the biggest challenge of a company.

If they not offering ESOS, it might give the cash as bonus............same result

Think again. Offering ESOS doesn't mean the company is paying less cash bonus.

This post has been edited by simplesmile: May 15 2010, 08:00 PM

Its a way to replace cash bonus, we cant said a company paying much bonus is not worth to invest

I tak faham what you mean

Cash bonus is an expense which reduces the value of our shares and also cashflow. ESOS is dilution which also reduces the value of our shares. However, depending on industry, employees may expect the annual bonus. So it's almost mandatory expense. I remember ESOS has no impact on company cash flow? Also lah, employees who become shareholders through ESOS may be motivated (maybe haha) to perform better for the company since it will help increase the value of their shares?

Think you will feel that even more with the new FRS required company for book in the 'sum they lose to ESOS' into book
But personally I am not against that, so long that's not too exceptionally high...

Some might say it's to preserve cashflow but then it's also a cost of doing business

I personally invested some in ESOS myself. I guess it is not so bad when the ESOS requires the employee to hold on to the stock for certain period of time.

In that case these employees will not sell the stock right away for a quick after getting these stocks at discounted price.