Mylod: Sinking 35% of free cash flow into SBC destroys company value
Bob Mylod · Ep5. Stock Comp, AI Cold War, Valuations for LLM | BG2 with Bill Gurley, Brad Gerstner, & Bob Mylod · Bg2 Pod · Mar 21, 2024 · at 45:43
Booking Holdings Chair Bob Mylod criticizes corporate board reliance on low annual share dilution percentages while ignoring massive cash flow drainage from stock compensation.
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“If you dilute free cash flow by 30 to 35% every single year for 20 years, guess what? Your dilution is 35%, you know. It's not a half of, it's not 50 basis points, it's not one percent, it's not two percent, it's literally, you know, a third of the company.”
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