DoorDash removing 1-year cliff for equity grants • Hacker News Board

Re: DoorDash removing 1-year cliff for equity grants

#121

Post by soheil » Wed, Jul 07, 2021, 10:14 PM UTC

nostrademons wrote: post #114

soheil wrote: post #83

Earlier quoted context omitted.

I get the point about unhappy employees sticking around just for their cliff to vest, but what about attracting a new breed of employees looking for short term employment?

That's already a risk in tech, because wages are so high but ramp-up times are pretty long. They get weeded out relatively quickly and usually run out of desirable employers, though. That's why employers are skeptical of employees with multiple short-duration stints or gaps on their resume.

So if they do get weeded out quickly then why would any rational employee even care about not having a cliff when looking for a new job to begin with?

This is simply increasing the risk of hiring short term employees in addition to existing risks including the high cost of ramp-up times.

Re: DoorDash removing 1-year cliff for equity grants

#122

Post by MattGaiser » Wed, Jul 07, 2021, 10:14 PM UTC

bogota wrote: post #110

MattGaiser wrote: post #96

Earlier quoted context omitted.

There are a surprising number of people who graduate CS/CE without writing any meaningful amount of code. To me a decent junior should be able to build a basic Hacker News. There are a lot out there who have never done so much as make a web page with more than copy/pasted Jquery and expect to get jobs.

Yes unfortunately almost all US and likely other computer science degrees are geared largely at making you a good researcher. I was lucky in that i loved playing with some home servers and with that led to figuring out how to build my own software before finishing school. I think college does a very bad job of preparing you for the real world use such as most having people turn in zip files and not even using git (ma…

I graduated two years ago. We learned subversion :)

Re: DoorDash removing 1-year cliff for equity grants

#123

Post by [deleted] » Wed, Jul 07, 2021, 10:19 PM UTC

DebtDeflation wrote: post #26

Not surprised. I'm probably a fair bit older than the average HN reader (finished undergrad in 1995). This is the hottest job market I've seen since the height of the dotcom bubble (mid 1999 to early 2000), and if it continues along it's current trajectory it will pass that by year end.

[deleted]

Re: DoorDash removing 1-year cliff for equity grants

#124

Post by arnvald » Wed, Jul 07, 2021, 10:20 PM UTC

marktangotango wrote: post #61

DebtDeflation wrote: post #26

Not surprised. I'm probably a fair bit older than the average HN reader (finished undergrad in 1995). This is the hottest job market I've seen since the height of the dotcom bubble (mid 1999 to early 2000), and if it continues along it's current trajectory it will pass that by year end.

> This is the hottest job market I've seen Clearly this is anecdotal, but what types of things lead you to this conclusion?

I live in EU and there are a few things that have changed:

- tons of remote offers, even with technologies like Java where in the past very few offers were remote

- salaries significantly up compared to 1-2y ago (getting 90-100k eur for a remote position in EU was rare, now it's not surprising to see such numbers)

- companies shorten interview processes, both in terms of numbers of rounds but also the time the whole process takes. In the past companies could reply to your application after a week, now I saw a few cases where a week after applying they send an offer

Re: DoorDash removing 1-year cliff for equity grants

#125

Post by alasdair_ » Wed, Jul 07, 2021, 10:46 PM UTC

adoxyz wrote: post #2

Good, pro-employee move. Next, I'd like to see pre-IPO startups offer longer periods to exercise shares when you leave. 90 days being standard is way too low.

Niantic offers 10 years to exercise as an NSO and has done so for almost six years now.

Re: DoorDash removing 1-year cliff for equity grants

#126

Post by ekzy » Wed, Jul 07, 2021, 10:48 PM UTC

novok wrote: post #120

TBH I'd feel jittery working at door dash. COVID is going to end completely soon and the boom in deliveries is going to drop with it, probably along with their stock price. If was to go work there, I could start selling every month. But they also don't give you units of RSUs as stock comp, just cash equivalents, so that is another major downside working there.

Covid might have created some habits in people, not sure the deliveries are gonna drop that much

Re: DoorDash removing 1-year cliff for equity grants

#127

Post by woah » Wed, Jul 07, 2021, 10:54 PM UTC

devoutsalsa wrote: post #60

adoxyz wrote: post #2

Good, pro-employee move. Next, I'd like to see pre-IPO startups offer longer periods to exercise shares when you leave. 90 days being standard is way too low.

Is there any real incentive to offer more favorable terms to employees that plan to leave?

Offering more favorable terms means being able to hire better employees

Re: DoorDash removing 1-year cliff for equity grants

#128

Post by [deleted] » Wed, Jul 07, 2021, 10:58 PM UTC

nostrademons wrote: post #63

jypepin wrote: post #28

Earlier quoted context omitted.

What I've seen is generally the conversion happens once for the whole package, when you sign. So if the stock grows during your vesting period, the value increases (goes both way obviously). I think here they are mentioning value based, which means that instead of being given X amount of shares/rsu over 4 years, you're given "the equivalent of $X" at the begining of each years. So after 1 year, of the stock doubled i…

That's typical, but I've heard of a move away from it, to a plan where you get a set dollar amount every month(?) and it's converted to employee shares at the market rate then. Sounds like DoorDash just moved to it, and someone has linked a Blind thread where apparently Stripe/Instacart have, and I heard from a friend that Lyft just moved to that as well. I can see the importance of this from the company end - with t…

[deleted]

Re: DoorDash removing 1-year cliff for equity grants

#129

Post by [deleted] » Wed, Jul 07, 2021, 10:58 PM UTC

ericjang wrote: post #75

dabfiend19 wrote: post #10

Earlier quoted context omitted.

all of my friends at google say the grant is in dollars and stays in dollars at google. at the end of the quarter you get a variable number of shares based on current stock price. While this reduces upside, it also reduces downside.

Googler here. dabfiend19 is correct, around ~2019 I believe new L3 hires were switched to this new grant schedule. Prior to that, it was based on a fixed number of shares.

[deleted]

Re: DoorDash removing 1-year cliff for equity grants

#130

Post by etxm » Wed, Jul 07, 2021, 11:01 PM UTC

B-Con wrote: post #99

fallmonkey wrote: post #30

With Google doing front loading(33/33/22/11) and other companies also shifting away from conventional 25% per year vesting to make first few years more attractive, they gotta catch up to stay competitive. Uber recently did the same of removing cliff.

Source on Google doing front loading?

I had an offer in December that was 33/33/22/11