Re:We need to rethink employee compensation
by dj_axl on Wednesday June 24, 2015 @03:30PM
(#9773912)
> you won't see that money for 8-10 years
Amen. Not such a good notion to trade salary for options, when that extra salary could have been invested all that time. $10k in 2005 is equivalent to $17k in 2015, $21k if you consider dividends reinvested.
Re:We need to rethink employee compensation
by pjc50 on Wednesday June 24, 2015 @06:42PM
(#9774978)
The options are an investment. It's just that they're "out of the money" when issued. Modal payout is zero, the maximum possible has been tens or hundreds of millions; what is the expected value? Hard to say.
Amen. Not such a good notion to trade salary for options, when that extra salary could have been invested all that time. $10k in 2005 is equivalent to $17k in 2015, $21k if you consider dividends reinvested.