Re:We need to rethink employee compensation
by justonepost on Wednesday June 24, 2015 @06:12PM
(#9774833)
50% is a huge over estimation unless there already exists a liquid secondary market / the stock is public. 10% is more accurate.
This is the way I look at it:
A 50% chance to make $100K in 5 years with an interest rate of 5% is worth:
($100K * 0.5) / (1.05 ^ 5) = $39K
And if you have credit card debt then you should be discounting at something closer to 15%.