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Stripe sets one-year timetable to decide on going public

wsj.com

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Re: Stripe sets one-year timetable to decide on going public

#31

Post by encoderer »

bgorman wrote: post #25
shawnz wrote: post #4

Earlier quoted context omitted.

It's because the earliest RSUs they issued are expiring this year: https://www.theinformation.com/articles/stripes-early-stock-...

Wouldn't it be good for the company to let these RSUs expire? How does it benefit the company to make sure these exercise?

In some ways, yes, but I think if you game it out, you see how the company loses in a number of ways. First, repetitional risk. Second, it’s likely that a liquidity provider would emerge who could offer, basically, to buy call options from individual holders for enough premium to cover the taxes due on exercise. (Stripe would not want an unaffiliated 3rd party accumulating a large position)

Re: Stripe sets one-year timetable to decide on going public

#32

Post by chippiewill »

bgorman wrote: post #25
shawnz wrote: post #4

Earlier quoted context omitted.

It's because the earliest RSUs they issued are expiring this year: https://www.theinformation.com/articles/stripes-early-stock-...

Wouldn't it be good for the company to let these RSUs expire? How does it benefit the company to make sure these exercise?

It's not in the company's interest to piss off employees who can't afford to exercise their options without being able to sell them.

My company recently got bought by a privately owned company. Because of the ownership structure of the purchasing company we weren't allowed to exchange our options or let new ones vest so my company's board approved cancelling and reissuing everyone's options with an acceleration clause so they'd completely vest at completion so we'd all get a full payout. They did this because they knew if they didn't that there would be an exodus of employees before the purchase went through.

Employees represent a large % of the value of the company, if they all leave you just have a bunch of tech that no one else knows how to maintain or use. Institutional investors typically have such a large proportion of the shares that it's worth it to them to not just screw over employees because the employee sticking around and keeping shares is worth more than they'd save.

Re: Stripe sets one-year timetable to decide on going public

#34

Post by winphone1974 »

encoderer wrote: post #31
bgorman wrote: post #25

Earlier quoted context omitted.

Wouldn't it be good for the company to let these RSUs expire? How does it benefit the company to make sure these exercise?

In some ways, yes, but I think if you game it out, you see how the company loses in a number of ways. First, repetitional risk. Second, it’s likely that a liquidity provider would emerge who could offer, basically, to buy call options from individual holders for enough premium to cover the taxes due on exercise. (Stripe would not want an unaffiliated 3rd party accumulating a large position)

Transfer and using them as collateral are typically prohibited explicitly in the agreement, so I'd be surprised if this could happen

Re: Stripe sets one-year timetable to decide on going public

#35

Post by lxgr »

rglover wrote: post #20
TekMol wrote: post #7

It's interesting that there is so much technology and third party business involved in the process of moving value. - Visa has a market cap of $463B - Mastercard $362B - PayPal $90B - Block $48B Could it theoretically all be automated?

Yes, with Bitcoin.

Does Bitcoin support dispute resolution (i.e. chargebacks) yet?

Re: Stripe sets one-year timetable to decide on going public

#36

Post by clintonb »

preinheimer wrote: post #21
Aqua_Geek wrote: post #6

Earlier quoted context omitted.

That’s a LONG time (in total) for employees to wait for liquidity. Yes, they likely provided some opportunities for early employees to liquidate some of their holdings, but it’s got to suck to sit on that much funny money for so long.

They've had several options for employees to liquidate some of their holdings before now. They've generally only been open to current employees, but one a few years ago was also open to past employees.

Those offerings are only for options holders. RSUs cannot be traded; otherwise, every RSU holder has to pay taxes.

Re: Stripe sets one-year timetable to decide on going public

#39

Post by abigail95 »

changoplatanero wrote: post #18
TekMol wrote: post #14

Earlier quoted context omitted.

I have been paying and being paid for decades now, and I have never involved a payment processor in a dispute I had with the other side. If arbitration is the reason these companies exists, it seems like bad deal. Maybe they sell an illusion?

Maybe your credit card number was stolen without your knowledge and they took care of it for you without you even being aware

That would be whoever made the cards fault. We don't give credit for cleaning up your own mess, that's the minimum standard for engaging in a beneficial relationship.

It's not a value proposition from gmail that you can't access my inbox just from knowing my address.

I can't believe you can be a $400B company and the value comes from stopping fraud that you enabled by your own product design.

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