5 ms·
Yup. The fact that compensation is included, is useless. Companies give you unvested shares worth tonnes that take > 4 years to fully vest. The attrition rates
by lokithor 10y ago
Yup. The fact that compensation is included, is useless. Companies give you unvested shares worth tonnes that take > 4 years to fully vest. The attrition rates are so high, the sweat shops can get away with it.
- BhavdeepSethi 10y agoNone of the sweat shops offer equity.
- lokithor 10y agoAbsolutely! I completely agree. But what stops the consultancies from doing this without actually ever letting it to fully vest?
- webmaven 10y agoWell, that can change, especially if the "equity" is in a worthless employing subsidiary that never turns a profit or has a liquidity event.
- masklinn 10y agoStartups offer equity, consulting companies don't. That would actually tend to favor startups as the equity they grant drives the "compensation" upwards despite it being monopoly money until the shares actually vest and assuming they're even worth printing at this point.
- lokithor 10y agoAbsolutely! I completely agree. But what stops the consultancies from doing this without actually ever letting it to fully vest?
- ajmurmann 10y agoSame for the cash bonuses. All the workers might underperform and never see the bonus.
- sokoloff 10y agoHere's where software people find "loopholes" like they're looking for edge case bugs in code. Suppose Tata pulls exactly what you describe. Do you think that stands a half a chance in hell of standing up to scrutiny by DoL?
- ajmurmann 10y agoThat's interesting. So the laws aren't being taken literally?
- sokoloff 10y agoThey are generally not treated as executable code written in English, but rather are interpreted taking into account the facts and circumstances. If Tata has hundreds of employees, all making $80K and a $50K bonus, none earning the bonus due to poor individual performance, but all being retained by the company and sent on new client engagements (presumably due to acceptable performance). In finance, this is often referred to as substance over form, but the same concept applies in other areas of civil law as well.
- umanwizard 10y agoUnvested RSUs aren't counted as compensation, at least for tax purposes.
- cobookman 10y agoSometimes I wish we could just fine Tata for going against the spirit of the h1b law. If its a large enough fine they might stop their shenanigans.
- koheripbal 10y agoTata is just one of MANY similar companies.
- conanbatt 10y agoYou dont need to fine Tata, you need to make it not a lottery, reduce restrictions and then let anyone who wants to do it do it.
- mavelikara 10y agoIf you get $1,000,000 worth of equity that vests in 100 years, your annual stock compensation is still $10,000.