Ask HN: What is it like working at Netflix?

Re:Ask HN: What is it like working at Netflix? by diab0lic on Saturday July 18, 2015 @08:31PM (#9909548)

Right, I apologize, I had assumed you're familiar with the Netflix option program and just inappropriately using the term ESPP. We have a rather straightforward option program in which you purchase an immediately vesting option for 40% of the current market price, strike price is equal to the current market price. If the stock doesn't increase 40% (used to be 20%) then you don't just break even, that money is gone. There is risk.

I wasn't asking really in terms of wether or not it was true, I'm asking really as in you somehow think this is some negative point against the company. I'm just not sure I understand how providing an opportunity to employees is a negative?

The wealthier Netflix employees who accept more risk than me are paid more than me, because they're in a position to accept more risk.

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Re:Ask HN: What is it like working at Netflix? by nicholas73 on Sunday July 19, 2015 @02:02AM (#9910195)

This sounds terrible. I can't find option data since they just had a split, but 40% sounds incredibly high even if the options don't expire. Furthermore the growth phase for NFLX likely has peaked, so what is the point in buying illiquid options? Can employees even sell these options?

Furthermore at-the-market strike prices give you the least amount of leverage. What is the point of accepting the risk of complete loss and illiquidity when you can put up just 2.5x more and buy the damn shares outright?

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Re:Ask HN: What is it like working at Netflix? by kethinov on Saturday July 18, 2015 @08:49PM (#9909598)

Interesting, thanks for the additional detail. I am not a critic of a system like that.

However, that doesn't explicitly refute my point. Am I wrong in assuming that there are no limits on ESPP contribution?

If that is indeed the case, then my argument stands.

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Re:Ask HN: What is it like working at Netflix? by diab0lic on Saturday July 18, 2015 @09:59PM (#9909737)

I don't believe there are any limits on the option program contribution. I'm not trying to refute your point, I imagine we just both have a philosophical difference in view on wether or not this is good.

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Re:Ask HN: What is it like working at Netflix? by kethinov on Saturday July 18, 2015 @10:33PM (#9909815)

I'm not talking about options, which as you pointed out do indeed carry risk, I'm talking about ESPP. They're different programs.

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Re:Ask HN: What is it like working at Netflix? by svachalek on Sunday July 19, 2015 @01:07AM (#9910110)

I don't think there is an ESPP at Netflix.

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Re:Ask HN: What is it like working at Netflix? by CrankyFool on Sunday July 19, 2015 @10:58PM (#9913806)

Take this as authoritative: There's no ESPP at Netflix. I've been here long enough to remember when there was one :)

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Re:Ask HN: What is it like working at Netflix? by kethinov on Monday July 20, 2015 @10:24AM (#9916211)

Back when it was in place, was 100% contribution a thing or was my info incorrect for back then too?

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