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Options have value, but the value comes with a large variance and serious risk. From a financial perspective, what you want isn't $1,000 worth of options, but
by compiler-guy 9y ago
Options have value, but the value comes with a large variance and serious risk.
From a financial perspective, what you want isn't $1,000 worth of options, but a _risk-adjusted_ $1,000 worth of options. Which means in all likelyhood, more like $100,000 worth of options.
Oh, the company doesn't want to give you that much? Well then, "Show me the non-risky money."
- hinkley 9y ago10:1 or 20:1 would have sufficed, I think. But I don't think managers understand that while options might make people stay while things are going well, they make them flee (or worse, stay and become resentful) when things are clearly not going well. If you reward someone for their service you have to do it right or don't bother at all. A reward that loses its value, is delivered late, or requires the recipient to nag you constantly to deliver at all, has negative value for the person. 'Thanks for nothing' is not something you want to hear from an employee. It crushes motivation.