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They used to be paid in stock... they wanted $15/hr instead.
by rukittenme 7y ago
They used to be paid in stock... they wanted $15/hr instead.
- danbolt 7y agoIt’s hard not to blame those workers if they’re living paycheque to paycheque. For a well-paid programmer it’s a different story but it’s not hard to imagine the immediate liquidity bieng more valuable when expenses take a bigger bite of your income.
- jedberg 7y ago> For a well-paid programmer it’s a different story but it’s not hard to imagine the immediate liquidity bieng more valuable when expenses take a bigger bite of your income. One of the best parts about Netflix's compensation program when I worked there was that you could choose your ratio of stock to cash. You could do 100% stock if you wanted to, or 0%. Despite this freedom, almost no one chose to get any stock at all. Even people making $200K+ decided the cash was better than the stock.
- mhb 7y agoWhy is it better to get some stock instead of its cash equivalent which could be used to buy stock?
- jedberg 7y agoThe stock was purchased at an 80% discount. To be clear, it was a stock option, and the option price was 20% of the stock price. So it had to go up 20% to break even. But if it went up 40% you doubled your money. This is basically what happens behind the scenes at other companies that offer you stock compensation in the form of options. It's just all hidden from you.
- nullc 7y agoEspecially after the backdating scandal many companies moved to offering RSUs. These were shares just purchased at a favorable price, no option involved.
- TomVDB 7y agothe option price was 20% of the stock price. 20% off the stock price?
- jedberg 7y agoNo of. If the stock was at $100 that month, we paid $20.
- ars 7y ago> If the stock was at $100 that month, we paid $20. and > So it had to go up 20% to break even. But if it went up 40% you doubled your money. Are contradictory. If you paid 20% of the stock prices you made money instantly, you made a TON of money actually.
- jedberg 7y agoThe stock is at $100. I purchase the option to buy it in the future at $100. I pay $20 for this option. I'm currently $20 in the hole, because I paid $20 for the option and got nothing. In the future, when the stock is at $120, I exercise the option and buy the stock for $100 with money borrowed from ETrade, and then sell it for $120. I've spent a total of $20, and gained $20 from the sale after paying back the loan, and am thus even. In the farther future, when the stock is at $140, I exercise my option and pay $100 for the share with borrowed money. I've paid a total of $20 and I get $40 after paying back the loan. I'm $20 ahead. Since I paid $20 out of my salary for the option, when it went up 20% I broke even, when it went up 40% I doubled my money.
- ars 7y agoI get it not, thanks for adding the details (it was really not clear from your earlier posts). This https://benefits.netflix.com/united-states/financial https://benefits.netflix.com/united-states/financial says the options currently cost 40% of the stock price, which seems very high to me.
- 7y ago
- tomerico 7y agoIf they provide it to you on a vesting schedule like other companies do, you gain time in market - i.e. you also gain the stock appreciation until they are vested.
- jedberg 7y agoNo vesting. You purchased the options monthly based on the current price, and they were immediately vested and good for 10 years, whether or not you were employed with the company.
- decebalus1 7y agoWow.. such bubble, much removed from reality. 78% of Americans live paycheck to paycheck. And spoiler alert: it's not because of buying iphones! Yeah, fuck these people for not having proper financial education and a savings account.
- rukittenme 7y agoI didn't make a value judgement. Don't read into malice that isn't there.
- decebalus1 7y agoWhere's the assumed malice? I didn't say you were malicious, just far removed from reality.
- rukittenme 7y agoAgain not making a value judgement. I think we agree that people preferring cash over stock options is understandable and normal. You should probably direct your comments to the OP.
- wilma5 7y agoAll the paycheck to paycheck people I know are literally taking out loans to buy $2.5k MacBooks which they mistreat and break within a year only to buy another one.. They go through $1k iPhones and Samsung phones every couple of months due to cracked screens and have new car loans of $650 per month which they completely trash.
- Ididntdothis 7y agoSeems you know only a certain type of people. I know or have met quite a few people who almost every month worry how to get food on the table or what to do if their old beat up car breaks down.
- 7y ago
- srtjstjsj 7y agoI bet they'd prefer $20 or $30.