Can anyone explain the meaning of this S-8 filing today nominally talking about 100 million shares (with only 216 million now presently outstanding) at maximum proposed price of $7.09???? And restricted stock units to be given away???? What is this???
It appears to me this is just a shelf registration to have another 100 million shares for use in giving to new brokers. The system BGCP uses is that instead of bonuses, employees get restricted stock which they can't sell, etc, but which pays them dividends at the same rate as shareholders. So, if BGCP buys more brokerages, as they plan to, they have to give the brokers stock. As long as the acquisition is accretive, then is should be good for the current stockholders.
Thanks, Brooklyn - That's what I was thinking too, however, I'm a bit more cynical about it than you. To me, by the shear size of the authorization, it seems like a potentially massive transfer of ownership of the company from outsider common holders back to the company employees and/or management. It sure seems to have the potential effect of massive dilution to my percentage ownership, which is a trivial amount btw.