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> Facebook could end up paying dearly for mediocre employees to stay on (as its share price falls, it has to hand out more in stock-based compensation to keep p
by ec109685 8y ago
> Facebook could end up paying dearly for mediocre employees to stay on (as its share price falls, it has to hand out more in stock-based compensation to keep people).
Does this passage make sense? With a high flying stock, Facebook would be paying more for mediocre employees while the rsu’s vest than if their stock is lower. If Facebook increases rsu’s to even out the employee’s comp, then the net cost to Facebook will be the same at the lower stock price.
Their only risk is if Facebook’s stock starts appreciating again and they are on the hook for more rsu’s at the higher price.
- RhodesianHunter 8y agoI think it does, because with many of these companies you're granted X shares vesting over 4 years and if the share price causes you to drop below your total "target comp" they issue you more shares to make up for it, so it's an additional grant out of FBs pocket.
- ec109685 8y agoBut Facebook takes the expense when the rsu’s vest.