12 ms·

The fact that people routinely fail to see obvious deleterious repercussions of their actions doesn't mean that they fail to see all obvious deleterious repercu

The fact that people routinely fail to see obvious deleterious repercussions of their actions doesn't mean that they fail to see all obvious deleterious repercussions of their actions. If you routinely lay people off before their vesting cliffs, you'd have to pay them more up-front (also you would probably get into legal trouble). Penny-pinchers are very keen on not paying people more up-front (including paying more lawyers). The fact that people routinely miss implications that seem just as obvious that this one does not oblige them not to notice this one.

SQueeeeeL 4y ago
Being a good ethical person/organization who rewards loyalty and doesn't treat people like shit is astonishingly profitable. You just can't teach that shit in 2 years tho, so instead they just teach optimization problems
- nsonha 4y ago
  > ethical person/organization who rewards loyalty what does loyalty have anything to do with ethic? Like being loyal is right and not being loyal is wrong?
- TomSwirly 4y ago
  Bad people like gang bosses also reward loyalty.
  - killingtime74 4y ago
    And they are very successful since they get people to die for them for less than minimum wage
icedchai 4y ago
It's probably better for the company, cash-flow wise, to lay employees off after their vesting cliff. Some of them might exercise their options, using the severance you just paid them, reducing your total expenses. You can always increase the option pool in the next round (if there is one.)
- moosedev 4y ago
  These days*, the equity component of most** offers takes the form of RSUs, not options, i.e. when the equity vests, you just get stock (public or private). *, ** For some definition of "these days" and "most", based on first-hand factual knowledge of the FAANGs (except Netflix with their special approach to comp), various "unicorns", and a long list of US-based companies modeling themselves on and/or aspiring to be the next FAANGs and unicorns.
  - icedchai 4y ago
    Yes, I realize this. I was mainly talking about the earlier stage startups where you are offered traditional stock options, not RSUs.

SQueeeeeL 4y ago

Being a good ethical person/organization who rewards loyalty and doesn't treat people like shit is astonishingly profitable. You just can't teach that shit in 2 years tho, so instead they just teach optimization problems

nsonha 4y ago
> ethical person/organization who rewards loyalty what does loyalty have anything to do with ethic? Like being loyal is right and not being loyal is wrong?
TomSwirly 4y ago
Bad people like gang bosses also reward loyalty.
- killingtime74 4y ago
  And they are very successful since they get people to die for them for less than minimum wage

icedchai 4y ago

It's probably better for the company, cash-flow wise, to lay employees off after their vesting cliff. Some of them might exercise their options, using the severance you just paid them, reducing your total expenses. You can always increase the option pool in the next round (if there is one.)

moosedev 4y ago
These days*, the equity component of most** offers takes the form of RSUs, not options, i.e. when the equity vests, you just get stock (public or private). *, ** For some definition of "these days" and "most", based on first-hand factual knowledge of the FAANGs (except Netflix with their special approach to comp), various "unicorns", and a long list of US-based companies modeling themselves on and/or aspiring to be the next FAANGs and unicorns.
- icedchai 4y ago
  Yes, I realize this. I was mainly talking about the earlier stage startups where you are offered traditional stock options, not RSUs.