My husband was given 5 shares of his company in 2007. His employer is claiming that the business only profited $60k. Can an employer be hiding assests? Is there financial benefits by offering employees shares?
He should look up the companies SEC quarterly filings (which are online by law). You can find out a lot of things there (executive salaries & compensation, etc). It probably has there whether an independant arbiter looked over the books.
What does a company gain by offering employees shares in the company?
November 29, 2008 By 3 Comments
Benefits of giving employees stock: Employees benefit by sharing in the profits of the company. The company benefits by having the employess being part owners in the company. They may be more productive if they have a share in the company. There may be a tax benefit to the company. Can a company hide assets? I suppose it is possible. World Com added expenses to assets for years, so it is certainly possible to reverse the process and expense assets instead of capitalize them. Some accountants can be very clever, especially if their bonuses depend on it.
References :
http://www.nceo.org/library/esops.html
References :
He should look up the companies SEC quarterly filings (which are online by law). You can find out a lot of things there (executive salaries & compensation, etc). It probably has there whether an independant arbiter looked over the books.
References :