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But that causes employees to lose a powerful tool they have: ability to invest future earnings in the company and recall their future investment (by quitting) i
by usaar333 7y ago
But that causes employees to lose a powerful tool they have: ability to invest future earnings in the company and recall their future investment (by quitting) if things don't work out.
- aiiane 7y ago"Recall future investment" makes no sense. Isn't that just a fancy way of saying "not invest"?
- usaar333 7y agoWell not quite. If a startup offers me $800k in equity over 4 years, I'm fully invested. If it doubles in a year, I'm now earning $400k in equity a year for next 3 years rather than $200k. (I recall my investment) If it dies after a year, I only lost $200k, not the entire $700k.