The share price unchanged because the required return on equity increases.
What happens when equity increases?
If an employee has gained responsibilities without requiring a reclassification or if their base compensation is significantly lower than that of comparable internal roles or the local labor market, they may be eligible for an equity rise. Equity adjustments are intended to take important and/or exceptional pay administration issues into consideration.
The bi-annual equity call is the main method for equity increases, however on extremely unusual circumstances, an equity increase may be granted outside of the normal cycle. Direct submissions to Human Resources/Compensation are required for examination and approval of equity requests. Higher shareholder equity often signals more stable financial conditions and greater adaptability in the event of a financial or economic crisis for a company.
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