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This happens in the Bay Area for a similar but different reason, the promise that you’re on a rocket ship that is pre-initial exit can hold folks tight with sub
by codezero 5y ago
This happens in the Bay Area for a similar but different reason, the promise that you’re on a rocket ship that is pre-initial exit can hold folks tight with sub dollar stock options that promise to 20-30x in value if you win the lottery.
Smarter folks have just gone for the one or two year cliffs, this is one of the reasons “job hopping” is looked down on for high skilled workers and attributed to attitude and not the companies’ failed promises. Obviously not keeping people is painful for growth too, but it’s still a very one sided power dynamic.
- chris11 5y ago> Smarter folks have just gone for the one or two year cliffs Four year cliffs are much better for employees. Shorter cliffs will cost people a lot of money if the valuation shoots up.
- codezero 5y agoI don’t understand. In fast moving small companies (<150) employees this sounds absurd. Are you talking about different companies? Can you maybe give me an example, or something concrete to root your statement in?
- chris11 5y agoI misspoke and used cliff as the length of the grant instead of when it started vesting. Short cliffs are good, some companies are starting to vest equity grants immediately. I haven't heard of a two year cliff. Some companies are also doing one year grants instead of four year grants, like Stripe. That's costing employees a lot of money.
- codezero 5y agoGot it, we are very much on the same page.