How do you know they were? It works both ways. I am lucky enough to have a brother who is the vice president of a listed company and have had many talks about this subject. The stock is given as compensation for work performed. That is then given a monetary value. Making it an asset of the person who did the work which is why it is taxed and many of them have to sell some of the shares to cover the taxes. It wasnt given for free it was given for a service. If they acquire them through an option then they are actually buying them with their money. Both ways the stock is acquired with an expense to the insider. But I will respect that we can agree to disagree