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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 hi
by 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 agoI wouldn't call that "golden handcuffs." I would call it a better job offer.
- lazerwalker 9y agoIf 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 agoAs 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 :) )