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Have seen this far too often. I was at a successful UK based startup very early on, so my strike price was pennies. Those who joined a year or two later were lo
by 02thoeva 9y ago
Have seen this far too often. I was at a successful UK based startup very early on, so my strike price was pennies. Those who joined a year or two later were looking at strike prices in excess of £30 with hundreds shares. Recent investment rounds put the share price at around £120, but as always current employees can't sell until a full sale or IPO.
The result? A swell of employees who want to leave/move on but can't afford to buy their shares and leave. It's lead to a number of people just hanging around, even when their enthusiasm and passion is waining.
Not what options are designed for!
- gaius 9y agoNot what options are designed for! Not "deferred compensation"?
- 02thoeva 9y agoPoint being, lots of companies offer options on the 4 year vest, 1 year cliff in order to keep great employees. If the end result is that mediocre employees end up hanging around, not motivated, then it works for neither the employee, nor the business.