Why a Stock Split is Attractive for Executives
Jaap de Jonge, Management Consultant, Netherlands
One reason is that many executives personally own stock in their own firm. That could be part of an employee stock option plan
or simply because they believe in their own company and improvement efforts.
Suppose one exective currently holds 1000 stocks.
If the stock price increases by $0.10 then the value of his shares increases by 1000 x $0.10 = $100.
After there has been a stock split as you say 3 for 1, then after the split the executive holds 3000 shares.
Suppose now the price of the stock goes up by $0.10, then the value of his shares goes up by 3000 x $0.10 = $300.