James Emanuel on Clouded Judgement

Would be great to rank these by stock based comp abuse. It is the most abused aspect of corporate finance and the US tech sector is the worst offender. It's a de-facto tax on shareholders levied by insiders, on top of their already very generous pay packages. It acts as a huge drag on total shareholder returns and it also introduces huge distortions to share prices as companies seek to disguise the dilution by buying stock in vast quantities at any price, stretching the market cap far from economic reality based on fundamentals. Through this lens, some of these companies are just ticking time bombs waiting for the next dot-com correction. I welcome your views.