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It is, though the currency he lays his employees with is equity. That’s the challenge that Big Tech has to confront. If the stock value falls too much, Zuck w
by mathattack 4y ago
It is, though the currency he lays his employees with is equity. That’s the challenge that Big Tech has to confront. If the stock value falls too much, Zuck won’t be able to convince engineers to join him for the ride.
- sangnoir 4y agoThe way RSUs are calculated (dollar amount to shares at time of hiring) he'll be able to convince new joiners just fine. Holding onto current employees would be the challenge - assuming he wants to hold onto them in the first place.
- bagels 4y agoOnly if they think the stock won't continue the decline.
- pardesi 4y agoWhy would new employees (at current quality or better) would join his mission of self-destruction?
- CoastalCoder 4y agoI suspect that many, many software developers would happily help Zuckerberg to implode. Getting paid well is just a bonus.
- m-ee 4y agoI made it through the on-site only to hit the hiring freeze. It’s a well paying remote job even factoring in stock depreciation, moderately interesting work, and I’d happily spend zuck’s money on VR goggles no one needs until it all implodes.
- loeg 4y agoThe pay is still good, if not great. My salary is approximately the same as total comp at my previous job. Even with the stock down around $104, my total comp is still some significant chunk better than previous comp (20-30%). (I'm an IC5 SWE.) It will eventually be a problem (in the sense that switching to GOOG or AMZN will be a much better prospect) if the stock continues to go down, of course. And a new hire evaluating their stock package should probably be a little concerned about the trend. The infrastructure to support you getting your work done is great. There are reasonably interesting software problems to solve. There are smart people to work with. There are some good benefits.
- cbtacy 4y agoRight now, anyone who joined Facebook in the last 5 years is underwater on their options.
- Zhenya 4y agoI doubt they get options, RSUs most likely.
- ink_13 4y agoThis is pedantically correct, but in practical terms, if you got RSUs at any price in the last five years, they're still worth less than you were offered.
- deadmutex 4y agoThere is a huge difference between stock price being 20% lower than RSU grant price vs. 20% below option strike price. With options. If options are way out of the money, then they're worth a lot less than the RSUs.
- sangnoir 4y agoFar from being pedantic: having underwater on options is very different from having RSUs worth less than they were in the past. If an individual were to liquidate one of each; the underwater option would have negative monetary value, whereas the RSUs will always have a positive value. Never mind the convoluted tax implications of exercising options that are nominally not underwater, but whose stock has a lower value that at the time of granting.
- loeg 4y agoRSUs, and yes.
- jchonphoenix 4y agoActually, everyone is underwater on RSUs. We do 4 year vesting so even people who started 5 years ago are vesting their stock from 4 years ago.
- mathattack 4y agoThe dilution will be much higher if the share price stays lower. Think about it this way: Giving 20 billion in new equity per year when the market cap is a trillion dilutes everyone 2%. When the market cap is 500 billion you are now diluting everyone 4%. When the company is growing you don’t see the dilution as the increase in stock price is much higher. When it’s static this drags your shares down over time.
- sangnoir 4y agoHow much were the shares "undiluted" by buybacks? I suspect more is spent on buybacks than on RSUs.
- asdff 4y agoIn what world does meta not have an indefinite line of applicants for every position? Social media being kinda icky is the least of engineers worries. Don't forget some of them are making careers coming up with the next new killing-majig to sell to the public and seem to have no issues sleeping.
- boatsie 4y agoIt’s all relative though, big tech gets hit all at the same time.