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Thanks. I was wondering about that, but had never heard of a split in a private company.
by 100k 11y ago
Thanks. I was wondering about that, but had never heard of a split in a private company.
- tyre 11y agoIt's more common than you think. I was an early engineer at ZenPayroll (now Gusto) and they split the stock 10-to-1 in their last round. As the company grows and the value of the stock goes up, it becomes difficult to give granular stock options. Rarely publicized because it doesn't mean anything. Owning 5/1000 shares or 50/10000 is the same.
- hkmurakami 11y agoThe split definitely helps nudge a new hire to be happier with the offer, all things, being equal, because many hires are still unknowledgeable about the fact that the number of options is irrelevant (like you say), and there is also the subconscious satisfaction of seeing big numbers next to our names that is hard to fight.
- koberstein 11y agoMcDonalds has done it 12 times.