Software Rout Has Investors Questioning Paying Workers in Stock

For years, investors looked the other way as software companies used their stock to pay employees while the share prices soared. But now that they’re getting pummeled over AI fears, the practice is raising questions.

This is particularly acute for software firms, which are some of the biggest users of stock-based compensation. It allows companies like Salesforce Inc. and Workday Inc. to use less cash to pay their workers and instead plow that money back into their businesses.