Fixing Stock-Based Comp Sins

The article examines how stock-based compensation (SBC) expense and shareholder dilution have become increasingly visible as revenue growth has slowed across tech companies. It analyzes public vs. private company dilution dynamics, introduces the concept of a 'dilution death zone' where dilution outpaces valuation growth, and explores strategies companies like Zoom are using to reduce dilution through equity program restructuring and headcount optimization.