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Also makes me wonder if many stock option schemes make sense at all, if employees think they are worth zero.
by jerguismi 8y ago
Also makes me wonder if many stock option schemes make sense at all, if employees think they are worth zero.
- ForHackernews 8y agoThey usually are worth zero, but they also cost the company zero, right?
- hobofan 8y agoNot 100% sure, but dependant on how the ESOP equity pool is structured, it can be quite limiting in terms of fundraising options if not done well.
- jerguismi 8y agoHow is the cost for the company zero? If you issue employee options/stocks, you devalue existing shares. Often investors have invested to the company and have paid cash for the shares. From company shareholders perspective the cost of issuing shares to employees is definitely not zero.