Investors Growing Wary of Stock Payment Programs

Investors are paying more attention to stock-based compensation at many tech companies. Many companies pay employees with stock, theoretically aligning worker interests with company performance. But thus far in 2016, stock markets have had a rougher go, and investors are wary about that practice, especially at tech companies where it has been more common. Mark Mahaney, an analyst at RBC Capital Markets, said Twitter, LinkedIn, Yahoo and Alibaba are among the tech firms most dependent on stock to pay employees.