No. of Recommendations: 7
Companies like Berkshire Hathaway and Constellation Software are remarkable because they have almost not capital allocation 'leakage.' They pay their employees in cash so that their share count holds steady.
I think all companies should be forced to pay all employees in cash, all the time. Completely up to them how they calculate the amount, so they could simulate option or stock purchases if they want, use profit-share calculations, whatever, but the cash-flow statement would then have an unambiguous record of the cost of employees.
SA
