Re:Shopify lets staff decide cash-stock pay mix as shares dive
by sokoloff on Friday September 16, 2022 @12:35PM
(#32868604)
Which leaves the employee with less upside going forward, at which point they can switch companies and "start over" with an RSU grant that is at par. In this regard the initial grant has a bit of flavor of an option. You have the option to stay on the vesting schedule or change companies and start a new vesting schedule, but any losses on unvested amounts don't hit you if you switch.
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Re:Shopify lets staff decide cash-stock pay mix as shares dive
by paulmd on Friday September 16, 2022 @01:23PM
(#32869241)
incentivizing productive employees (the ones with the most alternatives) to quit if the stock price (or the stock market generally) goes down is a hell of a side-effect when you put it like that.
I guess that's the monkey-paw side of "incentivizing the employees to make the company perform by giving them a stake in the upside"...
Re:Shopify lets staff decide cash-stock pay mix as shares dive
by sokoloff on Friday September 16, 2022 @02:33PM
(#32870216)
That’s why a lot of companies will issue special grants to their highest performing/most critical employees if the shares drop a lot. That makes for a good “double dipping” if the shares recover.
Re:Shopify lets staff decide cash-stock pay mix as shares dive
by marssaxman on Friday September 16, 2022 @06:29PM
(#32872848)
Real Networks did that for us, after the dot-com crash. The stock promptly dropped some more, and never recovered. I've been deeply skeptical of stock-based compensation ever since...