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Is holding the shares a condition of working there? Cause I'd rather sell them and diversify. I don't want the risk of the company going under to cost me my sal
by ReactiveJelly 5y ago
Is holding the shares a condition of working there? Cause I'd rather sell them and diversify. I don't want the risk of the company going under to cost me my salary _and_ my investments.
- sokoloff 5y agoI think there's a good balance with the current vesting schedules. You vest the shares at some point in the future (giving you current incentive to align your actions behind the goals of the company). Then, when they vest, you can sell them to diversify (sometimes with a short waiting period if there's a trading window blackout or something).
- TheCoelacanth 5y agoThat's essentially what a vesting period is. A popular vesting schedule is 25/25/25/25, which means you would be able to sell 25% one year after getting the shares, another 25% after the second year and so on. Typically they would keep giving you more shares as your shares vest so that you always have some shares that you can't sell yet.