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The stock options ideally align employees with the goals of the business. Anyone who believes in the company they work for should desire options over cash.
by godzillabrennus 11y ago
The stock options ideally align employees with the goals of the business. Anyone who believes in the company they work for should desire options over cash.
- p4wnc6 11y agoNot if you want to diversify. If your job is the source of your cash income and is also the primary source of equity, that's a problem, because if the employer has a downturn, you lose twice. It's generally bad if your cash income is highly correlated to your equity value. Claiming that stock compensation aligns employees with the company is just nonsense. You want to hire smart people, right? Well, smart people will want their income diversified.