With the full approval of its board, eBay is issuing ever-increasing amounts of stock options, transferring an unusually large portion of the company's market value to corporate insiders. And many of these insiders have wasted little time in cashing in, selling hundreds of millions of dollars worth of stock, even as other investors, especially mutual funds, have bought up the shares.
And it seems that even the peons might benefit:
Despite these concerns, eBay shareholders last week overwhelmingly approved a proposal that would increase the number of shares available under its latest stock plan by more than 50%. The proposal would allow the company to give away an estimated $1 billion worth of options, about $250,000 per employee, this year alone. This year's handout is more than four times eBay's net income last year.
Nice. A little more of the mini-bubble, perhaps?
Posted by jzawodn at June 30, 2003 12:03 PM