Stock Comp and Software’s Illusory Profits

Memo to software executives: Now is the time to radically reduce the amount of stock you give employees. That would win you some favor with investors, who’ve generally gone off your sector thanks to worries about the threat posed by AI. Even if those concerns are overblown, cutting costs in the face of a major disruption is a smart idea. It’s no secret that software companies overdo stock compensation compared with companies in other industries.