Why would a profitable company be motivated to pay a dividend to share holders vs increasing employee salary / bonuses?
I'm just trying to understand the motivation from the point of view of executives running that company. If you're running a profitable company, why not share the excess profits with employees / executives which have a much more significant impact on the performance of the company rather than paying dividends to share holders.
I understand that paying a dividend would attract more investors and most likely increase the price per share and if you're an employee who owns share, this also means they could sell their shares at a higher price, but not skip all of that and just transfer profits directly to employees?
This is just a thought experiment, so curious to hear your opinions.
Submitted December 24, 2022 at 12:56AM by curiouskafka https://ift.tt/st6o7kA
