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> The payments processor paid less than $3 million for between five and ten of Yik Yak’s engineers I feel like they could have saved money and created happy en

> The payments processor paid less than $3 million for between five and ten of Yik Yak’s engineers I feel like they could have saved money and created happy engineers by offering each employee a hefty sign on bonus.

pjc50 10y ago
It would be interesting if there were a transfer market in programmers like there is in footballers, but I don't see it happening any time soon. (Partly this is because the rules of the game prevent replacing Lionel Messi with 1,000 cheap non-Western consultants hired through three layers of outsourcing)
- cheriot 10y ago
  What successful company has been built by "1,000 cheap non-Western consultants hired through three layers of outsourcing"? We don't need a rule against a losing strategy
  - thaumasiotes 10y ago
    > We don't need a rule against a losing strategy Interestingly, these are common anyway. Some obvious examples are laws against suicide, incest, and infanticide.
  - nikanj 10y ago
    Wipro?
hkmurakami 10y ago
Going one by one would present decision fear to any number of said engineers. "Am I going to be offered this deal as well, or will I be left out?" By going at it collectively, it reduces perceives downside risk. Also, it reduces Square side's risk that one or more key people it wants would balk at the individual offer. By offering a group deal, it pressures everyone to join, since human nature is to not want to sabotage the communal good for your own benefit, especially when you've worked together for years. It may also permit a more holistic retention package for the next 4 years for this team and keep VCs happy.
nostrademons 10y ago
Oftentimes that's exactly how acquihires are structured: the acqhiring company grants RSUs to the engineers they want that are worth $X00,000, making up for them forfeiting their stock in the acqhired company. It effectively amounts to a signing bonus, since engineers on the open market that need to be enticed to join may also be given similar offers. It's called an "acquisition" as a face-saving mechanism for the company's founders and investors. It lets them go to investors for their next startup [or fund] saying "Yeah, we [our portfolio company] were acquired by Square", which sounds a lot nicer than "We shut down the company and then Square hired all our people." The acquirer wins, the employees win, the founders & investors save face, and the losers are future investors who don't delve too deeply into what "acquired" means.

pjc50 10y ago

It would be interesting if there were a transfer market in programmers like there is in footballers, but I don't see it happening any time soon. (Partly this is because the rules of the game prevent replacing Lionel Messi with 1,000 cheap non-Western consultants hired through three layers of outsourcing)

cheriot 10y ago
What successful company has been built by "1,000 cheap non-Western consultants hired through three layers of outsourcing"? We don't need a rule against a losing strategy
- thaumasiotes 10y ago
  > We don't need a rule against a losing strategy Interestingly, these are common anyway. Some obvious examples are laws against suicide, incest, and infanticide.
- nikanj 10y ago
  Wipro?

hkmurakami 10y ago

Going one by one would present decision fear to any number of said engineers. "Am I going to be offered this deal as well, or will I be left out?" By going at it collectively, it reduces perceives downside risk. Also, it reduces Square side's risk that one or more key people it wants would balk at the individual offer. By offering a group deal, it pressures everyone to join, since human nature is to not want to sabotage the communal good for your own benefit, especially when you've worked together for years. It may also permit a more holistic retention package for the next 4 years for this team and keep VCs happy.

nostrademons 10y ago

Oftentimes that's exactly how acquihires are structured: the acqhiring company grants RSUs to the engineers they want that are worth $X00,000, making up for them forfeiting their stock in the acqhired company. It effectively amounts to a signing bonus, since engineers on the open market that need to be enticed to join may also be given similar offers. It's called an "acquisition" as a face-saving mechanism for the company's founders and investors. It lets them go to investors for their next startup [or fund] saying "Yeah, we [our portfolio company] were acquired by Square", which sounds a lot nicer than "We shut down the company and then Square hired all our people." The acquirer wins, the employees win, the founders & investors save face, and the losers are future investors who don't delve too deeply into what "acquired" means.