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Originally Posted by Army_of_One  When a company does well everyone profits. Some more than others...true. There are many ways people profit when a company does well. For example..if Walmart does really well and the stock goes up 25% the employee shares in the same profit as the CEO. Given the CEO owns more stock than the average employee but the profit percentage is the same. If a CEO make's $500,000 a year to make tough decisions, take risks, etc etc that helps that company BE successful so everyone can keep their job and not be laid off and the stock goes up making money for EVERYONE..isn't that guy WORTH a half a million...or a million...or ???...... |
Very few companies give stock or stock options to every employee, so, most of those employees can't afford to buy company stock, because the company doesn't pay them enough to pay their bills, buy their clothes, and have money left over for investing.
Or, if you work for a company like the one I work for. The company match portion of the 401k plan is given in company stock, until recently. I was able to start work with my company and enroll in the 401k plan and watch my 6% company match in company stock. I watched my company stock go from $30 per share down to almost $1 per share. All the while my company paid it's CEO a million dollars, watched the CEO sell off most of the company assets, and receive multi-million dollar bonuses for doing such a good job at selling the assets. All was not lost though as the stock price has bounce back to a whopping $4.50!
I don't have a college degree, and I bet that I could have run the company into the ground for a lot less than a million dollars a year and multi-million dollar bonuses. I would have done it for 60% less money.