Usually equity compensation is in lieu of base salary, so the base salary is often below median for comparable work at a comparable company that doesn’t offer e

Usually equity compensation is in lieu of base salary, so the base salary is often below median for comparable work at a comparable company that doesn’t offer equity. For instance Amazon is famous for offering absurdly low base salaries relative to their talent competitors. Wall Street is famous for this too. However bonus based compensation is outsized, often to account for the risk. The problem comes with laying people off in December prior to bonuses. You’ve taken a year of work under the presence of a bonus compensation and then yanked the rug out after squeezing every last ounce of work from a year. They could of course just not pay a bonus, but often internal compensation guidance requires proving a fireable performance problem while layoffs just require basic reporting to labor departments. Calling this theft is extreme, but it’s definitely ripping employees off and treating them badly. The imprudence mismatch is that the employee is much less able to afford the shenanigans than the employer benefits, and a year of an employees career is a much larger share of total lifetime earnings than the corporations benefit as a percentage of its total lifetime revenues (or compensation expenses as the case may be). This makes it wrong, but not illegal.