3 ms·
Do companies really fire people at week 51 to save some stock? Hiring is tough and you waste a lot of time onboarding people and getting them to a productive s
by riffraff 5y ago
Do companies really fire people at week 51 to save some stock?
Hiring is tough and you waste a lot of time onboarding people and getting them to a productive state, firing them just to save some stock after 50 weeks seems a bad idea, not to mention the morale implications.
- yroc92 5y agoHappened to me.
- ramphastidae 5y agoIt absolutely happens. I worked as an early employee at a company for its first 11 months … the founder was the main investor and a serial entrepreneur. He clashed with the CTO from the start and progress stalled … after a major disagreement, he decided he would rather sell the company to a competitor than continue to deal with the CTO. At the 11 month mark we were all told that we were fired, the company was shutting down, and and if we wanted severance, we’d have to sign away our rights to any claims from the sale.
- mathattack 5y agoCompanies do let people go to avoid granting stock. Banks also do it to stiff employees on their bonus. For startups it’s a forcing function to decide if they want to keep someone. (I’m not saying this is right, just explaining why it happens)