This phenomenon might to some degree be a function of the board’s veto power over the CEO. A primary reason you typically go public is to grow, so by default at IPO you’re a “growth stock”. But from that point on, its difficult to ever make a transition to a steady, sustainable “dividend stock”, especially as a tech company. If you try to, the stock will tank, all the “growth” investors will get mad and you (the CEO) will probably get fired by the board, and they’ll bring in a new “growth” CEO.
This phenomenon might to some degree be a function of the board’s veto power over the CEO. A primary reason you typically go public is to grow, so by default at IPO you’re a “growth stock”. But from that point on, its difficult to ever make a transition to a steady, sustainable “dividend stock”, especially as a tech company. If you try to, the stock will tank, all the “growth” investors will get mad and you (the CEO) will probably get fired by the board, and they’ll bring in a new “growth” CEO.