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

Re: DoorDash removing 1-year cliff for equity grants

#281

Post by almost_usual » Fri, Jul 09, 2021, 8:17 PM UTC

xyzelement wrote: post #165

almost_usual wrote: post #6

I was expecting a catch with the equity grant period shortening but it seems it’s still four years? If so this is great for employees.

Wouldn't grant period shortening be even better for employees? (ie, not a catch) ... Did you mean lengthening ?

No, a longer grant period means you benefit more from stock appreciation. If you get a 4 year grant and the stock goes up 5x in a year you get that for four years. If you’re on an annual grant I really doubt your employer will keep paying 5x your starting comp after a year.

Re: DoorDash removing 1-year cliff for equity grants

#282

Post by elil17 » Fri, Jul 09, 2021, 8:30 PM UTC

sergiotapia wrote: post #229

elil17 wrote: post #214

Earlier quoted context omitted.

Only due to a legal loophole DoorDash is exploiting in order to skirt labor laws

Aren't doordash workers 1099 and can take jobs as they see fit? I thought that was their model. Are you implying doordash delivery guys actually work 39 hours/week to skirt full-time employment? (that would be fucked up I agree)

Hiring thousands of individual workers to all do the same thing is not what 1099s are for.

Re: DoorDash removing 1-year cliff for equity grants

#283

Post by xyzelement » Thu, Jul 15, 2021, 2:27 PM UTC

almost_usual wrote: post #281

xyzelement wrote: post #165

Earlier quoted context omitted.

Wouldn't grant period shortening be even better for employees? (ie, not a catch) ... Did you mean lengthening ?

No, a longer grant period means you benefit more from stock appreciation. If you get a 4 year grant and the stock goes up 5x in a year you get that for four years. If you’re on an annual grant I really doubt your employer will keep paying 5x your starting comp after a year.

I am late to the response here but one of us is wrong about how grants work, and I think it might be you :)

An equity grant is an allocation of shares/options offered to you when you start. eg: join our company and get 40K shares. Vesting just controls how long it takes you to get those shares. In a 4 year vesting you get 10K each year. In a 1-year you'd get them all at once in 12 months.

This is independent of the share price, it's your equity that's the whole point. So in no universe is it better to get 40K after 4 years than it is to get 40k in one year.