5 ms·

Golden handcuffs.

by gonzo 9y ago

Golden handcuffs.

harryh 9y ago
That's not really the case here. Golden handcuffs refers to stock that was previously granted but either has not yet vested or has vested but the employee can't keep if they walk away from the job. While the employees in question surely own Yik-yak stock that stock is now worthless. They're starting at Square just like they would start at any other job. Thus they will stay at Square if it is a better job for them (for whatever reason) than they could otherwise get.
- ithinkinstereo 9y ago
  They prob have various retention bonuses in place (either cash, square options, or both) to keep the acquired engineers at Square for x months/years.
  - harryh 9y ago
    Sure, but again, the clocks on those are starting at zero just like you might get at any new job.
    - nedwin 9y ago
      They probably got $x00,000 signing bonuses with a claw back of 2 years in addition to the stock compensation. They definitely could shop around and find a new role (if they can find another company they want to work for in Atlanta) but it's unlikely to come with as healthy compensation as that. Plus if you like your team you can keep working together.
    - s73ver 9y ago
      The point being that a random guy hired off the street isn't getting those bonuses at all.
- lazerwalker 9y ago
  Yes, but presumably as part of the acquisition they're getting $X00,000 of stock/cash on a 4-year vest. That's far more than one would get for a standard new hire options package at a company of Square's size/maturity. I'd say that's accurate to describe as "golden handcuffs", since they (probably) can't just walk down the street to another company and get that offer matched.
  - harryh 9y ago
    I wouldn't call that "golden handcuffs." I would call it a better job offer.
    - lazerwalker 9y ago
      If golden handcuffs are "stock that was previously granted but either has not yet vested or has vested but the employee can't keep if they walk away from the job", I'm curious at what point unvested stock becomes "golden handcuffs". The one-year cliff? One month in? After the first day, when waiting for your one-year cliff is one day closer than your one-year cliff would be if you quit and started a new job the very next day? (Hope this isn't coming across as combative — if we're gonna have a discussion of semantics, I'm trying to nail down where you're coming from :) )
      - harryh 9y ago
        As with many things in life I would say that it's shades of grey. Perhaps they are handcuffs from day one but they haven't been latched closed yet. The longer you stay the tighter they get. The "tightness" of the handcuffs is, roughly speaking, the % of your motivation to work there based on a previously accrued reward vs reward that is earned day by day. With powerful enough golden handcuffs the company could reduce your salary to zero and you would still stay (though perhaps be pissed about it). (not coming off as combative :) )

Golden handcuffs.

by gonzo 9y ago

Golden handcuffs.

That's not really the case here. Golden handcuffs refers to stock that was previously granted but either has not yet vested or has vested but the employee can't keep if they walk away from the job. While the employees in question surely own Yik-yak stock that stock is now worthless. They're starting at Square just like they would start at any other job. Thus they will stay at Square if it is a better job for them (for whatever reason) than they could otherwise get.

ithinkinstereo 9y ago
They prob have various retention bonuses in place (either cash, square options, or both) to keep the acquired engineers at Square for x months/years.
- harryh 9y ago
  Sure, but again, the clocks on those are starting at zero just like you might get at any new job.
  - nedwin 9y ago
    They probably got $x00,000 signing bonuses with a claw back of 2 years in addition to the stock compensation. They definitely could shop around and find a new role (if they can find another company they want to work for in Atlanta) but it's unlikely to come with as healthy compensation as that. Plus if you like your team you can keep working together.
  - s73ver 9y ago
    The point being that a random guy hired off the street isn't getting those bonuses at all.
lazerwalker 9y ago
Yes, but presumably as part of the acquisition they're getting $X00,000 of stock/cash on a 4-year vest. That's far more than one would get for a standard new hire options package at a company of Square's size/maturity. I'd say that's accurate to describe as "golden handcuffs", since they (probably) can't just walk down the street to another company and get that offer matched.
- harryh 9y ago
  I wouldn't call that "golden handcuffs." I would call it a better job offer.
  - lazerwalker 9y ago
    If golden handcuffs are "stock that was previously granted but either has not yet vested or has vested but the employee can't keep if they walk away from the job", I'm curious at what point unvested stock becomes "golden handcuffs". The one-year cliff? One month in? After the first day, when waiting for your one-year cliff is one day closer than your one-year cliff would be if you quit and started a new job the very next day? (Hope this isn't coming across as combative — if we're gonna have a discussion of semantics, I'm trying to nail down where you're coming from :) )
    - harryh 9y ago
      As with many things in life I would say that it's shades of grey. Perhaps they are handcuffs from day one but they haven't been latched closed yet. The longer you stay the tighter they get. The "tightness" of the handcuffs is, roughly speaking, the % of your motivation to work there based on a previously accrued reward vs reward that is earned day by day. With powerful enough golden handcuffs the company could reduce your salary to zero and you would still stay (though perhaps be pissed about it). (not coming off as combative :) )