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Totally agree. I've also seen the converse of this though - employees leaving almost immediately after their one-year anniversary. Of course I completely unde
by abstractbill 16y ago
Totally agree.
I've also seen the converse of this though - employees leaving almost immediately after their one-year anniversary. Of course I completely understand why they would do that, but it does leave a nasty taste in my mouth every time I see it happen.
- shazow 16y agoThe cliff is incentive to stay that first full year. The gradual vesting of the rest of the equity is incentive to stay past it. If people are leaving immediately after the first cliff, then the proportions might need to be adjusted. Perhaps they don't perceive the remaining stock as valuable and the cliff is just a wakeup call.
- kareemm 16y agoEnh. An employer who uses a cliff incentivizes an unhappy employee to leave only after passing the cliff. If there was no cliff, he/she could take his 11m of options and go. But in a binary situation, the employee might as well wait out the time to get past the cliff.
- deleted 16y ago[deleted]