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If you’re joining a $60 billion company with thousands of employees expecting rocket-ship growth, that’s kind of on you, I think. You wouldn’t expect that from
by intuitionist 7y ago
If you’re joining a $60 billion company with thousands of employees expecting rocket-ship growth, that’s kind of on you, I think. You wouldn’t expect that from a public company; why would you from a similarly sized company that just happens to be pre-IPO?
- marnett 7y agoAmazon in 2016 was $502 a share, it is $1900 now Microsoft in 2016 was $51, $127 now Facebook was $97, $189 now We're not even talking about rocket-ship growth here. We are talking about option strike prices losing money in one of the most favorable economic time periods where massive, healthy public business did have monstrous growth. I would have at least expected price parity with other large companies - even that assumption would have been wrong.
- JMTQp8lwXL 7y agoThat can be a tricky comparison to make over time, due to share splits and merges. Apple has split 4 times, for example. Taking these numbers at face value, I can't know if they account for it.
- marnett 7y agoWithin the timeframe I listed [2016-2018] none of the companies I listed performed a stock split. Neither did Apple. Apple's most recent stock split was 2014.
- intuitionist 7y agoExpecting price parity with other large companies, okay. But the expectation in 2016 wasn’t for Facebook etc. to be at today’s prices in 2019, or they would have been priced higher then.
- usaar333 7y agoEven parity with cash. Investing in tech (say vgt) has had 90% returns over the past three years.
- pavlov 7y agoThe Silicon Valley giants don't do options anymore, but RSUs (restricted stock units) which are simply share awards. There's no strike price to worry about, but of course it's a bit of a disappointment if you expected Uber to be a $100B company out of the gate. Still, Uber employees will be happy that they can finally sell those RSU awards (in six months when the lockup expires).
- 8ytecoder 7y agoI can’t speak for sure but that’s a little unlikely. RSUs are taxed on vesting. Bad idea when employees can’t sell a portion of it to pay the tax.
- deleted 7y ago[deleted]
- pavlov 7y agoUber, Airbnb and the rest definitely give RSUs. Details may vary but they may use contracts like “double trigger vesting” where you don’t actually receive the shares until they’re publicly traded.
- YeahSureWhyNot 7y agoI think the story with Amazon and Facebook are from being over.
- kingnothing 7y agoIt's very reasonable for employees over the past 3 years to expect growth. Over the past 3 years: FB is up 60% AAPL is up 98% AMZN is up 261% NFLX is up 363% GOOG is up 60%
- zsiddique 7y agoYou left off TEAM (Atlassian) up 199% over the past 3 years.
- MAGZine 7y agoHow much has Google grown in the last three years? Or Facebook? Or Netflix? Or Atlassian? Uber not growing in value in three years, in the hottest economy, is a disaster
- swypych 7y agoI suspect you mean stock price growth only, I think the hype of Uber is now catching up with them. Uber most definitely grew over the last three years.
- akchin 7y agoIt shouldn't matter a lot since I am 99% sure that they were issuing RSUs at that time and not options. So the strike price based on 3-years ago valuation is not relevant. Also, I am sure the number of RSUs you got at Uber should have been more than the RSUs at FAANG, to compensate for some of the risks. Now, if an individual Uber employee came out ahead, vs. having joined a FAANG really depends on the offers they had.
- Blackthorn 7y agoIt matters a ton. You get your rsu grant sized based on the stock price at the time of the grant, just like options. If that price goes up, you make money... Just like options.
- ytpete 7y agoIt's not just like options though, is the point they were making - if the price goes down, you still make money with RSUs, just not as much.