That is not zero risk, that is just aligning the risk with the rest of the company. Zero risk would be them working for FAANG. They would get their money and sp

That is not zero risk, that is just aligning the risk with the rest of the company. Zero risk would be them working for FAANG. They would get their money and spend it however they like. The idea that the stock is undervalued is ridiculous, if it really was it would mean you as the founder made a mistake raising money. Are you really suggesting your employees should pay more for the stock than your investors? Why? Also realize that your employees are taking a bigger risk than the investors, as employees can only spend their salary once. There's only a 1/20 chance their stock will be worth anything, maybe even smaller. Investors invest in more than 20 companies so they have a smaller risk on their total portfolio.