3 ms·
Would you suggest companies clawback equity when it over performs?
by cpitman 4y ago
Would you suggest companies clawback equity when it over performs?
- deleted 4y ago[deleted]
- bin_bash 4y agoI see this argument a lot: companies shouldn’t offer more equity in a down market because employees wouldn’t be willing to give back equity if they were up significantly. It doesn’t matter if this situation is “fair” though. What matters to the company is people will quit if they’re making half of what they expected to make.
- 3bproblem 4y agoThis is exactly right. In some situations it's a matter of practicality not morality. Anyone compensated in equity in large part needs to be willing to accept some share price volatility, but at a certain point people are going to leave and the company has to be proactive about that.