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Old 10th August 2006 | 12:33
  #856 (permalink)  
Re-Heat
 
Joined: Dec 1999
Posts: 1,606
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From: UK
I forget the exact text but BA has set aside £75m worth of shares this year to reward the directors!
But these are share options, not cash and not money that is going out from the company. They are simply 20,000,000 new shares that have been created, which dilute the shareholding of the other shareholders. So similar to saying to Mr. Schroder that instead of 3.90% shareholding in BA, he now has 3.899% as the number of shares he holds are a smaller proportion of total shareholding. Share price shifts a little to reflect this, and the shareholders gain when management work to increase the value of their holding as they are incentivised to do so.

Anyone can afford to do that - there is no cash involved!
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