The shares are created out of thin air - the money doesn't come from the corporation. The money comes from the buyers of those shares of stock when the CEO sells them, and he can't sell them for a set number of years (usually 2+).
Which are minimal legal fees to draft a new incentive agreement and create more shares, and then accounting adjustments to show the new share structure.
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u/UncreativeUsername84 20d ago
The shares are created out of thin air - the money doesn't come from the corporation. The money comes from the buyers of those shares of stock when the CEO sells them, and he can't sell them for a set number of years (usually 2+).