5 ms·

Interesting timing, wouldn't think it's optimal given macro conditions, but perhaps they don't want to wait however long it'll take to get back to the frothy ma

Interesting timing, wouldn't think it's optimal given macro conditions, but perhaps they don't want to wait however long it'll take to get back to the frothy markets

shawnz 4y ago
It's because the earliest RSUs they issued are expiring this year: https://www.theinformation.com/articles/stripes-early-stock-awards-could-spur-ipo-plans https://www.theinformation.com/articles/stripes-early-stock-...
- Aqua_Geek 4y ago
  They’re options that are set to expire, not RSUs. Yes, the employees could exercise them to prevent them from expiring, but then Uncle Sam comes to collect his dues. And that’s where illiquidity burns you.
  - alasdair_ 4y ago
    They are definitely RSUs.
  - deleted 4y ago
    [deleted]
  - chimeracoder 4y ago
    > They’re options that are set to expire, not RSUs. Both options and RSUs are required by law to have expiration dates. And it's plausible that either or both could have expiration dates within the next 12 months.
  - kasey_junk 4y ago
    Double trigger rsu’s in private companies also expire and holders of those have no option even to eat the taxes in that case. They just lose them.
    - Aqua_Geek 4y ago
      Good point. I forgot about that.
- bgorman 4y ago
  Wouldn't it be good for the company to let these RSUs expire? How does it benefit the company to make sure these exercise?
  - alasdair_ 4y ago
    It would be terrible for the company. Every single competent person would leave immediately and no employee would ever trust them again.
  - Jakawao 4y ago
    Employees tend to leave when a major portion of their compensation disappears.
  - ball_of_lint 4y ago
    Equity compensation and what it's valued at is a big factor in choosing to work at Stripe. If they start letting RSUs expire, it will make ~everyone value their equity significantly less; Stripe would likely have significant difficulties finding and retaining talent.
    - philsnow 4y ago
      Not to mention I think people would also find the names of those responsible and the stench would follow their names forever.
  - deleted 4y ago
    [deleted]
  - encoderer 4y ago
    In some ways, yes, but I think if you game it out, you see how the company loses in a number of ways. First, repetitional risk. Second, it’s likely that a liquidity provider would emerge who could offer, basically, to buy call options from individual holders for enough premium to cover the taxes due on exercise. (Stripe would not want an unaffiliated 3rd party accumulating a large position)
    - 4y ago

Interesting timing, wouldn't think it's optimal given macro conditions, but perhaps they don't want to wait however long it'll take to get back to the frothy markets

shawnz 4y ago

It's because the earliest RSUs they issued are expiring this year: https://www.theinformation.com/articles/stripes-early-stock-awards-could-spur-ipo-plans https://www.theinformation.com/articles/stripes-early-stock-...

Aqua_Geek 4y ago
They’re options that are set to expire, not RSUs. Yes, the employees could exercise them to prevent them from expiring, but then Uncle Sam comes to collect his dues. And that’s where illiquidity burns you.
- alasdair_ 4y ago
  They are definitely RSUs.
- deleted 4y ago
  [deleted]
- chimeracoder 4y ago
  > They’re options that are set to expire, not RSUs. Both options and RSUs are required by law to have expiration dates. And it's plausible that either or both could have expiration dates within the next 12 months.
- kasey_junk 4y ago
  Double trigger rsu’s in private companies also expire and holders of those have no option even to eat the taxes in that case. They just lose them.
  - Aqua_Geek 4y ago
    Good point. I forgot about that.
bgorman 4y ago
Wouldn't it be good for the company to let these RSUs expire? How does it benefit the company to make sure these exercise?
- alasdair_ 4y ago
  It would be terrible for the company. Every single competent person would leave immediately and no employee would ever trust them again.
- Jakawao 4y ago
  Employees tend to leave when a major portion of their compensation disappears.
- ball_of_lint 4y ago
  Equity compensation and what it's valued at is a big factor in choosing to work at Stripe. If they start letting RSUs expire, it will make ~everyone value their equity significantly less; Stripe would likely have significant difficulties finding and retaining talent.
  - philsnow 4y ago
    Not to mention I think people would also find the names of those responsible and the stench would follow their names forever.
- deleted 4y ago
  [deleted]
- encoderer 4y ago
  In some ways, yes, but I think if you game it out, you see how the company loses in a number of ways. First, repetitional risk. Second, it’s likely that a liquidity provider would emerge who could offer, basically, to buy call options from individual holders for enough premium to cover the taxes due on exercise. (Stripe would not want an unaffiliated 3rd party accumulating a large position)
  - 4y ago