> After they leave the company or retire, the complete balance of their accounts will be paid out to them over a six-year period.
Hmmm, so that line is a little misleading since they don't really "own" the stock in a conventional sense. They can't sell it to anybody else and they can't hold on to it indefinitely.
To the extent they "own" it they are are forced to only ever "sell" it back to the same company at some market-defined rate. (Arguably a form of stock-buybacks by the company.)
However that does sidestep the other tricky problems of taking money from retired employees (via diluting their stock) to award an ever-growing pool of shares to current employees every month.
Hmmm, so that line is a little misleading since they don't really "own" the stock in a conventional sense. They can't sell it to anybody else and they can't hold on to it indefinitely.
To the extent they "own" it they are are forced to only ever "sell" it back to the same company at some market-defined rate. (Arguably a form of stock-buybacks by the company.)
However that does sidestep the other tricky problems of taking money from retired employees (via diluting their stock) to award an ever-growing pool of shares to current employees every month.