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Companies like Stripe, Coinbase & Lyft have moved to annual vesting stock grants instead of 4 years. This really screws employees and I finally found a chart that shows by how much. $200K in stock at today’s price then get 25% each year > $50K each year. tanay.substack.com/p/employee-com

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Jesse Powell

@jespow

Replying to

@Carnage4Life

You have to look at total comp per year. The grants are different every year, not laid out for many years on day 1. So, they could adjust annually but basically, this is the end of windfall scenarios. Your upside is capped. You’ll always be adjusted back to a total annual comp.

4:34 PM · Jul 10, 2021Twitter for iPhone

Replying to

I agree the goal is to end employee windfalls at or after IPO. This practice used to be limited to Amazon who used the narrative of company value of frugality to justify it while minting the richest human on Earth (LOL). To see growth companies do this is quite stunning.

Jesse Powell

@jespow

Jul 10, 2021

When you get to be $50b+ though, I think it gets harder for people to imagine how you 10x from there, and it could be a 20-year slog. If people still want the chance of 10x over 4-6 years, they should go earlier stage. If you want pretty much guaranteed high, liquid comp, later.

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