3 ms·

Would issuing RSUs instead of options avoid this issue?

• nedwin 10y ago
  Avoids some of the issues, creates more particularly limiting upside potential. Strong recent article https://medium.com/@chamath/spending-money-to-make-money-aka-stock-based-compensation-aka-listen-up-founders-feac1dea3d28#.scc067jjf https://medium.com/@chamath/spending-money-to-make-money-aka...
  • nulltype 10y ago
    Nice article! Good graphs. Of course, not having stock at all because you can't afford your options may limit the upside potential even more than RSUs. Maybe it could be choice.
• cloudjacker 10y ago
  No, it wouldn't, they come with their own problems, which is why tech companies switched to greater option packages to begin with. There are financial instruments that could solve this problem, or simply any set of conditions, colloquially called a contract in some circles. It is difficult to introduce financial instruments in the US due to a variety of onerous regulations between the IRS, FASB, SEC and the associated capital structures companies take to comply with them. I have seen financial instruments that solve this problem, in Europe. I forget the name of them but German companies offer them to employees, they are functionally similar to a hybrid stock bond, as they are 'granted', I think they represent shares, and they also give coupons for several years, until maturity. But don't fawn over the possibilities of glorious Europe, because the grants are pitifully small. If you think the privilege of coughing up $7,000 for your worthless options is not good enough, well you'll get like 1/10th of that out of a European company, so lets focus on the issues that matter and try to culturally appropriate something that seems like it could work better.