MSO and LP Stock-Based Comp Analysis

As I work my way through analyzing the cannabis industry, I wanted to know how much the “Big 5” MSOs and LPs have been paying out to employees/management in the form of stock-based compensation.

In line with what I expected, the LPs have been significantly larger issuers of stock-based compensation than the MSOs.

Dialing into the “Big 5” MSOs and LPs over the past four quarters, Canopy has been by far the most egregious with issuing stock-based compensation, amounting to 64.5% of its sales. Cronos is also a notable offender, issuing 50.4% of its sales as stock-based compensation.

The MSOs are generally in line with each other, though I do appreciate Trulieve only issuing $1.7M in stock-based comp over the past year.