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This money is going back into the option pool which is used for new grants, its not going directly to the currently employees. With a 15.7B mkt cap the 14MM re
by richiezc 11y ago
This money is going back into the option pool which is used for new grants, its not going directly to the currently employees.
With a 15.7B mkt cap the 14MM represents ~8.9bps, I haven't kept up with his ownership but I remember looking at the S1 and I believe he used to own 4% of the company.
This is an important but mostly symbolic move.
- encoderer 11y agoIt reads to me he's talking about the pool of equity allocated to this year's grants. At companies like LinkedIn, you receive new grants every year to layer your equity and keep you there past your 4 year mark. Everybody does it differently, but it's usually something like "We have $x in equity comp available, lets do some magic calculation based on base pay and annual review to allocate this between our employees." Also, I can't speak to this personally but I've heard that LinkedIn offers are heavy on cash, less equity.
- solsteve 11y agoI received an offer from them early last year (declined) and cash compensation wasn't any higher than the other offers I had at the time, but the equity was substantially higher.