I think we need to understand to whom it was given.
If it’s to the employees, I think it’s a reasonable way of motivating them. Many companies have ESOP plans and I believe this specific plan began when Mr. Garg was still running the show.
Or course, any dilution is bad for Shareholders. What matters is what benefit the company gains from giving them out. It could be for retaining good talent, motivating employees or simply thanking them for years of service. If that converts to better work culture/ethic in the long term, that’s a win-win for both employees and shareholders.
I only hope that the new Management is open to discuss these matters in detail. If they’re not, I’d get suspicious for sure.
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