Yeah - this is the reason it's bad. If you calculate the number of shares determined by the price when you join you're locking in more shares earlier. If you a

Yeah - this is the reason it's bad. If you calculate the number of shares determined by the price when you join you're locking in more shares earlier. If you are forced to negotiate that each year then you lose the growth you would have gotten from locking in the cheaper shares earlier - and that's where the vast majority of growth exists. Imagine you worked at Tesla and joined at $250/share and five years later it's $2500/share. If you locked in 5 year vesting at $150k/yr calculated at the $250/share mark then in year 5 that's now worth over 1.5M a year! If you're forced to renegotiate every year there's no way they're going to grant you 1.5M worth of shares for another year (unless you're pretty high up the chain). It screws employees from capturing that growth. It's framed in a twisted way as employee favorable because in theory if you were granted 5 years worth of equity in 1 year it would be better, but nobody is doing that.