Non-cash expense for equity awards (options, RSUs) granted to employees. Added back to net income in OCF because it reduces GAAP earnings without a cash outflow. However, SBC is economically real — it dilutes existing shareholders and represents the true cost of employee labour. Value investors subtract SBC from OCF to arrive at owner earnings.
Representative XBRL tag
ShareBasedCompensation
Related terms
Metrics on this page are computed by Moatkeep from reported filings and market data and are estimates: they depend on modelling choices (e.g. period alignment, share counts, currency) and on the underlying data being correct. Definitions are in the glossary. Figures are not investment advice — see the full disclaimer.