4 ms·
Maybe an employee believes in the company and wants to take part, deeming the risk is worth it for them? Clearly that's what's happening. It's certainly ration
by austenallred 9y ago
Maybe an employee believes in the company and wants to take part, deeming the risk is worth it for them? Clearly that's what's happening.
It's certainly rational in some cases to take the risk of owning a portion of a company instead of taking the same amount of cash and putting it in the S&P 500. You're always investing your time and money, it's just a matter of where.
And for what it's worth, if you're getting paid $250k at Apple, you can probably go back at almost any time.
- s73ver_ 9y ago"Maybe an employee believes in the company and wants to take part, deeming the risk is worth it for them? Clearly that's what's happening." And that belief is abused, and the employees get fucked over when it comes time for an acquisition, as their shares get dilluted to hell and back.
- icebraining 9y agoYes, that often happens and it's clearly unethical. What's your point?
- pascalxus 9y agoHis point is, that you have to assume that will happen quite often. We're simply not equipped to forsee all the legal and financial risks of having stock options. We've seen too many ways that employees have been taken advantage of. You can't simply "trust" that if the company does well, you'll do well.
- icebraining 9y agoSure, but who said we should simply "trust" that?
- s73ver_ 9y agoThat's the implicit suggestion behind the entire options thing. Especially given that almost no individual developer has a bargaining position strong enough to demand the safeguards that would avoid those problems.
- icebraining 9y agoLook, people still gets big payouts, even if many get stiffed. One can still rationally take the leap even knowing that the game is rigged.