Stock-Based Compensation (SBC)
Shareholder Metrics
What is Stock-Based Compensation (SBC)?
Compensation paid to employees in the form of stock or stock options. An expense that does not directly reduce cash but dilutes existing shareholders.
Why Stock-Based Compensation (SBC) matters
High SBC can significantly reduce the value per share over time. Important to consider alongside reported earnings.
Related terms in Shareholder Metrics
Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.