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What's up with the cliff anyway? You're already asking me to take a much higher level of risk and a much lower level of liquidity than I'd like in my compensati
by cia_plant 13y ago
What's up with the cliff anyway? You're already asking me to take a much higher level of risk and a much lower level of liquidity than I'd like in my compensation, by giving me stock options. In addition to that you want me to take on 100% of the risk of our working arrangement not working out, and in fact you insist on giving yourself a strong incentive to fire me before the first year is out? It seems ridiculously exploitative.
- spacehome 13y agoI'm not sure of the details, but I think it's rooted in tax law -- that the options are classified differently if they're exercised within a year of their creation.
- cbr 13y agoIf that's the issue the options could vest monthly but just prohibit you from exercising them for a year. (not a lawyer) The standard reason for the cliff is that at first an employee slows everyone else down as they come up to speed, and then they start to help.