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I like the idea as a way to distribute gains to employees. Wondering why the units are limited to integer years rather than allowing constant accrual up to the

by ccostes 10y ago

I like the idea as a way to distribute gains to employees. Wondering why the units are limited to integer years rather than allowing constant accrual up to the 5 units. Additionally, it seems unfair that employee units go immediately to 0 upon leaving, rather than some sort of decay. They're saying that employees contributed to the success and deserve a bonus, why would that contribution be worth nothing the minute they leave? Something like an exponential decay on the units seems much more equitable.

slyall 10y ago
Subject to the problems above I much prefer this system to one of giving out options. It is nice and transparent and would give me a bit more confidence in actually getting a payout than the more usual options route. Having said that I did work for a company that did something like this and didn't follow though (with creating the trust etc). When they eventually sold they made employees a cash offer to sign away they rights. Money was equivalent to a couple of months pay which is more than I've made on any other company share incentive..