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You absolutely can. Stock price is really meaningless as far as the day to day life of a company is concerned- if your cash flows haven't changed, and the marke

You absolutely can. Stock price is really meaningless as far as the day to day life of a company is concerned- if your cash flows haven't changed, and the market has just decided to shit on you for a bit for irrational reasons there are no consequences other than maybe looking into whether a buyback makes sense. Equity markets are often irrational and wrong. IE Covid- essentially every stock was down significantly in March of 2020, not realizing that some businesses will actually benefit from the pandemic. That said, your statement about fat at these companies is true, and its probably been long past time that they clean out some dead wood.

oldgradstudent 4y ago
> Stock price is really meaningless as far as the day to day life of a company is concerned Not when significant part of your employee compensation is equity-based.
- kevstev 4y ago
  The market is going to do what it is going to do, I am not sure if you mean that from an employee based perspective or from a corporate perspective, but either should not matter- I guess with a big disclaimer that I am assuming that your core business is still doing well, but its just the "market" that has decided you are out of favor. From a corporate perspective, you are buying a fixed dollar amount of shares to compensate your employees- I haven't heard of a fixed number of shares being offered as compensation in years for pubic companies. This does not affect your cashflow, just the number of shares being purchased in the open market. From an employee perspective, its definitely not fun to see the value of your grants drop by 50%. It should only really affect your decision to leave or not if you feel the drop is permanent, or just a temporary blip. IE if I was hired at Peloton in 2020, the stock has dropped 95% and while it will likely bounce back a decent amount, the equity part of your compensation is essentially worthless and not going to be a golden handcuff that will keep you around. Google/Alphabet, its down about 30% but thats likely just an overreaction and is to some extent welcome as you get more shares in your grant... it wouldn't stress me out at all- maybe if I was looking to cash out and buy a house right now, but this was a risk that was always there.

oldgradstudent 4y ago

> Stock price is really meaningless as far as the day to day life of a company is concerned Not when significant part of your employee compensation is equity-based.

kevstev 4y ago
The market is going to do what it is going to do, I am not sure if you mean that from an employee based perspective or from a corporate perspective, but either should not matter- I guess with a big disclaimer that I am assuming that your core business is still doing well, but its just the "market" that has decided you are out of favor. From a corporate perspective, you are buying a fixed dollar amount of shares to compensate your employees- I haven't heard of a fixed number of shares being offered as compensation in years for pubic companies. This does not affect your cashflow, just the number of shares being purchased in the open market. From an employee perspective, its definitely not fun to see the value of your grants drop by 50%. It should only really affect your decision to leave or not if you feel the drop is permanent, or just a temporary blip. IE if I was hired at Peloton in 2020, the stock has dropped 95% and while it will likely bounce back a decent amount, the equity part of your compensation is essentially worthless and not going to be a golden handcuff that will keep you around. Google/Alphabet, its down about 30% but thats likely just an overreaction and is to some extent welcome as you get more shares in your grant... it wouldn't stress me out at all- maybe if I was looking to cash out and buy a house right now, but this was a risk that was always there.