Earlier quoted context omitted.
Thank you for answering. I ask because I have this theory that there is a correlation between employees who don't mind working more to make stock to go up if they have stock. It's never a simple analysis. I don't mind working more for a deadline if I recognize a tangible increase in revenue or cost savings, as I benefit from the stock. "Gave away" is an interesting term. In our company, stock is 10-40% of our compens…
> In our company, stock is 10-40% of our compensation, so it aligns our motives in a way that folks without stock don't have. Is it a publicly listed company? If not, how do you mitigate or incorporate the risk of being diluted and/or not being able to cash out?
I have a friend who gets part of his compensation as stock, but the company is not publicly traded. There's the vesting part, which he knows upfront, but the worst of it is that the valuation seems somewhat arbitrary, and he can't sell when he likes.
Now I understand they give the same valuation to everyone, as estimated by some third-party, but the issue is that even after the vesting period, he's not able to sell his stocks as he pleases if he needs the money. There's a pretty convoluted process, where he basically can only do this once a year and has to let someone know (don't know the specifics) ahead of time that he's looking to sell.