November 11 at 11:55 am
- Link
"It definitely affected our company. Right now we're in sort of a transition period... but whereas two years ago you only got restricted stock if you were a director+ (in an engineering company), now you get some restricted/some options if you receive an above average grant. It's been almost universally well received by the people who get it. Fred is right on re: the psychological difference.
One nasty side effect of underwater options is that they create a long-term demotivator. We have people with options granted in 2000 that are still underwater, and it's a constant reminder that things aren't what they used to be. In many cases it's also a reminder that people had six or seven figure paydays that they missed." - Mark McBride
I didn't need underwater stock options to remind me of missed paydays. I see it every day in SV. I get it rubbed in my face if I look at real estate. Sucks to miss out, but what can you say except, "bad timing?" I'd love to see a detailed explanation on RSUs, but it still won't change the fact that the party is over now. This part of the SV formula is a pyramid scheme. - David Lee