"...rarely are all the shares authorized under an incentive plan issued."
On the contrary. Incentive shares (bonuses) are almost always cashed in by employees and management. There were 11 million incentive shares set aside, if they don't plan to cash it at some point in the future, then why increase those incentive shares to 11.6 million?
Would you or any employee turn down shares offered at a discount to the market? That's free money.
"So the employee needs to pay something and the transaction isn't 100% "dilutive" to current shareholders."
I'm not sure what you mean by NOT 100% "dilutive." When authorized shares become outstanding shares, the number of outstanding shares increase, causing DILUTION. Even if money was raised during the dilution, that money does NOT increase the value of the company's market cap. That money goes into the company's cash ledger to be used in the company's operations.
In the majority of the time when dilution occurs, even if money was raised (paid by employees or investors), the stock price goes down. It goes back up if the company can use that money to increase revenue and profit.
The money raised during an issuance of shares does not cause the shares to be less "dilutive." Have you heard of the term, "Wash, rinse, and repeat" as it applies to penny stocks?
Have a look at PLUG as a recent example. The company raised $2.8 million and the price stock dropped from $.50 to $.12 because there's dilution from about 18 million shares--current shareholders' piece of the pie just got smaller, even if the company received $2.8 million during the issuance.
Dilution in general is extremely bad for current shareholders. Now, if PLUG can use that $2.8 money to grow the company, then the stock will rise.
