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The proper solution to this is to offer stock options that vest over several years to keep the employee, and to continually offer new set of options each year.
by mozumder 11y ago
The proper solution to this is to offer stock options that vest over several years to keep the employee, and to continually offer new set of options each year.
- ryandrake 11y agoIf the equity is liquid once vested (i.e. public company), then "stock I get in the future" is no better a reason to stay than "salary I get in the future". It's identical to normal compensation. If I make M a year and expect N in stock to vest next year, then I could just go out and look for an offer better than M+N. Options that are not liquid, however are a different kettle of fish. Mentally, I will usually value them at close to zero when comparing with other job offers (because more often then not that's what they'll end up being worth).
- pluma 11y ago> offer stock options Outside the valley nobody cares about stock options. Even within the valley many people are aware they're a gamble at best. You're most likely not working for the next Facebook.
- saryant 11y agoDepends on the company. Options in, say, Shell Oil are a completely different beast to options in a just-graduated YC company.