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Isn't that the fault of the private investors for overvaluing Facebook? Presumably all granted options had a strike based based on the current private valuatio
by birken 14y ago
Isn't that the fault of the private investors for overvaluing Facebook? Presumably all granted options had a strike based based on the current private valuation, which clearly the public market doesn't agree with (without judgement as to whether the public market is right or wrong).
- jcdavis 14y agoFrom what I understand (not an FB employee, but know several) the stock grants in the last ~3 years have been RSUs not options, which at least means they can't be underwater
- gamble 14y agoYep, but it's still a problem for the company. Facebook has been on a hiring spree, backed by an implicit promise that anyone in before the IPO would be practically guaranteed to make a buck. If the IPO is still a bust by the time the lockup expires in 3-6 months, it's going to be an HR problem. Of course, it depends on how Facebook actually structures its compensation packages. RSU are more popular with most companies these days than stock options, so they may just be looking forward to a smaller payday than worthless options.