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I didn't downvote you, but I do disagree with your view. A straightforward way to keep someone around after their four-year vesting clock expires is to grant t
by ridgeguy 10y ago
I didn't downvote you, but I do disagree with your view.
A straightforward way to keep someone around after their four-year vesting clock expires is to grant them new shares on a new vesting schedule.
Their initial grant was part of compensation that reflected their probable value contribution to the company over the four-year vesting cycle. If the company would accrue additional value by their continuing to work beyond four years, it should compensate them for that additional value with more equity.
And it's not adequate to say their work will increase the value of their already-vested equity. Dilution happens.
Also, it's not true that the two employees receive the same compensation. The one who departs receives six years less (salary, bonus, benefits, etc.) than the one who continues for ten years.