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Stephen Groff's picture
Submitted by Stephen Groff on

It’s a very good question. While it’s always nice to not see any "share creep" (from a shareholder perspective) it needs to be looked at along with overall compensation practices.

Having a portion of employee compensation in the form of equity or options is entirely acceptable so long as it is granted for the right reasons and reasonable in size. Some share count growth from incentivizing & retaining high performance employees is preferred to no share creep but excessive cash compensation for mediocre performance.

To your point, granting excessive options where management will benefit if things go right (but have little at risk if things go wrong) is certainly not a best practice.

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