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Mostly if we're discussing how equity compensation might not be the best option. Or how preferred investors and founders took what they could from the workers (
by smileysteve 11y ago
Mostly if we're discussing how equity compensation might not be the best option. Or how preferred investors and founders took what they could from the workers (in response to "refragmentation").
The Square IPO was less than employees who started after their last round and preferences made it even worse, meaning even though there is a liquidity event, employees who took options are out. With this significant drop, other employees who exercised their options (and paid taxes) are also out.
- aneesh 11y agoHow did preferences make it worse? Generally, preferred shares convert to common in the event of an IPO, so preferences are discarded.
- smileysteve 11y ago> With Square, investors were guaranteed a 20 percent premium on their investment, which would be worth $18.56 a share, meaning Square had to issue more shares to those investors, further devaluing the stock owned by employees. http://www.bloomberg.com/news/articles/2015-11-19/square-employees-find-some-of-their-stock-options-under-water http://www.bloomberg.com/news/articles/2015-11-19/square-emp...