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A cliff forces one to consider decisions with a different time horizon and tends to avoid short-term thinking (e.g. attempt to tune financial results ahead of a
by hrpnk 5y ago
A cliff forces one to consider decisions with a different time horizon and tends to avoid short-term thinking (e.g. attempt to tune financial results ahead of a certain quarterly report).
Sometimes, companies include in their annual reports the conditions of employee shareholding plans. In Europe, for management, plans with 1 year vesting and 1-3 years blocking period is a practice. This means that you cannot exercise the options until 2-4 years in. Further, all unexercised options are forfeited if the employee moves to the competition within a defined timeframe.
- jkaplowitz 5y agoHaving been fired once at the 10-month mark early in my career, not for misconduct and not after any prior performance warnings, the 1-year cliff can be heavily abused by employers. Your argument assumes the employee has the control over when they leave, which isn't always true. (In actual fact I was then a pretty underperforming employee who misunderstood the situation, but the apparent trigger for me getting fired was my own request for help addressing the situation since I realized something was wrong. The startup founders were as early-career as me and didn't really know how to give me the feedback I needed. My next employer did give me the necessary constructive criticism, after which I made the necessary changes, got subsequent positive feedback from that same employer, and have been a decent to good employee everywhere I've been since then.)