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Open original source ↗I agree with this 100%. I blame the large about of energy put into EBITDA based multiples. Obviously you can pay people w stock that is immediately sellable. That is same as cash but added up differently when we talk “adjusted EBITDA”. This is just weak finance.
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Every single company should include this chart in their annual proxy and it's how CEOs should be judged: $BKNG sets a gold standard for intellectual honesty on stock based compensation. What is SBC expense as a % of OCF? Ie. how much of your OCF is leaking right out the door as SBC? What is the % of EBITDA retained after SBC? And how many companies have a return of stockholder value chart or examples like this? All while growing top-line GBV at 10% CAGR. Kudos to the @BookingHoldings team. If you want to hear more on SBC and comp from $BKNG board chair Bob Mylod I highly recommend one of the earlier BG2 episodes below: @altcap @bgurley @BG2Pod
treiner5 ↗