3 ms·
This is part of why stock options are so valuable to organizations as an incentive: the retention power of high pay without the calculus of “do I have enough?”
by nthj 6y ago
This is part of why stock options are so valuable to organizations as an incentive: the retention power of high pay without the calculus of “do I have enough?” from liquid compensation
- _jal 6y agoHuh? Everyone I've ever known who had significant options knew exactly what they were worth. I knew someone who changed their bash prompt to (price * unvested count / days left). He said at the time it was the only thing that kept him from quitting or punching his manager.
- pjc50 6y agoLong ago companies only bothered issuing options when the stock was illiquid; certainly my startup share options never had a meaningful market value from founding to acquisition. Publicly-quoted companies issuing options is just a weird form of deferred bonus with a favourable tax treatment.
- ghaff 6y agoWell, they also come with the hope that they'll increase in value prior to vesting. But, yes, RSUs in public companies are certainly more like getting bonuses that vest over time than a stock market lottery ticket.
- secondcoming 6y agoHow do they know the price unless the company has IPO'd already?
- _jal 6y agoThe particular case I mentioned with the bash prompt happened at Netscape, his tenure straddled the IPO.