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Now they'd have an incentive to let them go in under a quarter, by that logic. Not sure if that's really their concern here. Companies don't just ditch reasona
by quelltext 5y ago
Now they'd have an incentive to let them go in under a quarter, by that logic.
Not sure if that's really their concern here. Companies don't just ditch reasonably well performing employees because they want to avoid compensating them. That would already mean that each time RSUs vest the company would have an incentive to fire.
- dodobirdlord 5y agoSure, and they do. It’s best to avoid that incentive by having stock grants vest frequently and fractionally. It’s essentially treated as salary, it might as well be paid out fractionally at the same frequency as salary so that no perverse incentives exist.
- ErikVandeWater 5y agoThis isn't complicated. If an employee is having a bad first year or the company is performing poorly it incentivizes firing.
- wpietri 5y agoMuch less so, because productivity is low in the first few months.