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Slightly related, Stripe now gives fixed $ amount of RSUs per year to new hires, which limits both upside and downside significantly. Not to act cynical, but to
by silentsea90 6y ago
Slightly related, Stripe now gives fixed $ amount of RSUs per year to new hires, which limits both upside and downside significantly. Not to act cynical, but to me it seems that this is another way of screwing employees by denying them stock appreciation on their initial grant. I understand that new hires would be signing off on this while joining so the rug isn't pulled beneath their feet, but this does seem like a start of a bad trend which if it catches on, will further the gap between employees and founders
- joshuamorton 6y ago> Slightly related, Stripe now gives fixed # RSUs to new hires, which limits both upside and downside significantly. Pretty much all companies start doing this once they get large-ish (snap, airbnb, lyft, uber, etc. all did essentially the same thing). At the valuation stripe has, I'm not seeing the downside, given that the upside of options is limited once you're the size of stripe today. > but to me it seems that this is another way of screwing employees by denying them stock appreciation on their initial grant How? If I'm granted 100 RSUs, and the company value doubles, my RSU value doubles. Fixed # of RSU is the better way (imo) in comparison to fixed dollar amount grants.
- silentsea90 6y agoI reworded my comment - but I meant that you're guaranteed (say) $100k worth of stock every year, so the #RSUs will be calculated at the start of each year. If the valuation of Stripe is 70 Billion today and one gets granted 100k worth of stock this year (say 100 units), if valuation is 140 Billion next year, employees get 50 units next year (ignoring dilution etc), instead of 100 units each year. I meant that it is fixed dollar amount not fixed RSU count per year at Stripe, if that helps clear it
- joshuamorton 6y agoAh, yes, that is the blehh approach.