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> IOW, they're being underpaid relative to market, in exchange for ownership, expecting to get more later when they sell the shares. Alas this would be a big i
by DaoVeles 2y ago
> IOW, they're being underpaid relative to market, in exchange for ownership, expecting to get more later when they sell the shares.
Alas this would be a big issue. It is the deferred payment test writ large. Do you want $20 now or $30 next week.
For a lot of humanity when times get difficult we will tend towards the immediate payoff rather than the long term. To eat the seed corn.
- Nifty3929 2y agoIt's more like, do you want $20 now, or a chance at $30 later, as long as you don't leave the company? That's a critical difference. If you pay me what I'm worth in cash, right now, I can do with that cash what I like - which includes investing it into the business. If you pay me with future promises that impose additional constraints, then my money is held hostage to those constraints.