managerial Rip Van Winkle, ready to doze for ten years, could not wish for a better “incentive” system.
Interestingly, a future stock promise to employees may have alterior motives behind it. If dividends are only a small portion of a companies net expenses then it would be benefitial for a company to incentivize employees to stay in the company and continuously add value that can be capitalized on. This value added grows due to compound interest and would only benefit the companies yearly retained earnings
