DoorDash removing 1-year cliff for equity grants

Re:DoorDash removing 1-year cliff for equity grants by quelltext on Wednesday July 07, 2021 @10:03PM (#27767788)

Now they'd have an incentive to let them go in under a quarter, by that logic.

Not sure if that's really their concern here. Companies don't just ditch reasonably well performing employees because they want to avoid compensating them. That would already mean that each time RSUs vest the company would have an incentive to fire.

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Re:DoorDash removing 1-year cliff for equity grants by dodobirdlord on Wednesday July 07, 2021 @10:49PM (#27768018)

Sure, and they do. It’s best to avoid that incentive by having stock grants vest frequently and fractionally. It’s essentially treated as salary, it might as well be paid out fractionally at the same frequency as salary so that no perverse incentives exist.

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Re:DoorDash removing 1-year cliff for equity grants by ErikVandeWater on Thursday July 08, 2021 @12:00AM (#27768330)

This isn't complicated. If an employee is having a bad first year or the company is performing poorly it incentivizes firing.

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Re:DoorDash removing 1-year cliff for equity grants by wpietri on Thursday July 08, 2021 @12:16AM (#27768429)

Much less so, because productivity is low in the first few months.

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