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Are employees supposed to make gains on their equity based compensation when their company underperforms? Isn't this a risk you take when joining a startup? Thu
by bagacrap 7y ago
Are employees supposed to make gains on their equity based compensation when their company underperforms? Isn't this a risk you take when joining a startup? Thus far the only thing Uber has ever proved successful at, financially, was taking VC money. So it sounds like what you're asking for is that startup employees be allowed to siphon vc funds into their personal bank accts.
- juped 7y agoThis is a ludicrous comment unless you believe that "employees" deserve to be second-class citizens. Lots of people cash out during funding rounds. It may be the status quo, but no one deserves their equity being a scam.
- TrackerFF 7y agoHere's the way I see it - whether or not a company is profitable, rests entirely on executive management. It's their job to steer the company into profitability (by the right vision, strategies, and execution). For rank and file workers, that may just build up the company, should get paid for their work. A company can be worth a lot, but still perform poorly. If you have enough VC money coming in, you can purposely run a company unprofitable 'till for a long, long time - if you're goal is to simply undercut competition.