Twitter lavishes stock options on its employees. That's a bad idea.

Twitter is reportedly in talks with several major technology and entertainment companies over a potential buyout. Suitors reportedly include Microsoft, Salesforce, and Disney. The social media upstart's stock price has surged amidst speculation of a sale, and that could be a saving grace for its corporate management: Twitter's user numbers have plateaued, causing skittishness on Wall Street about the company's growth prospects, and sending the stock price on a two-year slide. But whoever winds up buying Twitter will also have to figure out an unusual situation: How to deal with the large amount of stock Twitter doled out to its employees as a form of compensation. Lots of companies bake stock ownership programs into employee compensation.

Topics:  technology   
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