Further, if the stock is stagnant or declining, this would be *taking* money fro... | Hacker News

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		zamalek on July 19, 2023 \| parent \| context \| favorite \| on: Tesla directors agree to return $735M following cl... Further, if the stock is stagnant or declining, this would be taking money from investors via stock dilution. If Jim puts $10 into the company for 10 of 100 total shares, and you increase the shares to 200 by handing out money to executives - Jim now owns $5 (10 of 200 shares) with his other $5 being used to "print" the shares. This is not currently the case with Tesla, but the stock has a reputation for being volatile.

dghlsakjg on July 19, 2023 [–]

It’s taking money from investors no matter what the price does.

If the price is going up the existing investors now own a smaller percentage of a more valuable company.

It’s just more obvious if you get diluted while the company doesn’t change value.

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