Now that dividends have been paid out through share increases (called scrip dividends) many shareholders are asking if company CEOs also took this option. Just three of them, Emilio Botín, José Ignacio Sánchez-Galán and Florentino Pérez, chose to receive their dividends in cash.
Why? Because companies usually pay scrip dividend by raising capital. Then, companies use the new money to create and distribute new shares. Most CEOs at big private companies have chosen to keep their company stock level stable, leading them to take the scrip dividend and buy more shares to avoid diluting the shares they held.