Amazon staff might get paid 50% less because shares have fallen so much

Re:Amazon staff might get paid 50% less because shares have ... by rippercushions on Tuesday February 21, 2023 @08:52PM (#34890501)

No, options are more of a gamble. Stock values move up and down, but an RSU worth something today will likely be worth something tomorrow: even much-pilloried Meta stock is down "only" 50% from peak at this point. An underwater option, though, is completely worthless.

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Re:Amazon staff might get paid 50% less because shares have ... by adam_arthur on Tuesday February 21, 2023 @09:11PM (#34890650)

You could easily grant employees "in the money" options that have a lower risk profile, and similar characteristics as RSU. This is effectively what an RSU is anyway, an option with a strike price of 0 that vests+exercises at some point in the future. Not to mention most startup options are granted at 409A valuation, which in most cases is below actual market value.

No meaningful difference between the two for the context being discussed above. Different tax treatment. Believe whatever you want though

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Re:Amazon staff might get paid 50% less because shares have ... by singron on Wednesday February 22, 2023 @01:37AM (#34892406)

It's difficult to grant privately held equity that's taxable when it vests since you can't sell it to cover the taxes. Also if the company doesn't go anywhere, you paid a lot of taxes for nothing, and it can be difficult to even claim a loss if the company still limps along.

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Re:Amazon staff might get paid 50% less because shares have ... by hamster77 on Friday February 24, 2023 @12:00AM (#34920985)

You cannot legally grant stock options in the US with an exercise price below the 409A price (private company) or grant date price (public company)

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