DoorDash removing 1-year cliff for equity grants
blog.doordash.com
DoorDash removing 1-year cliff for equity grants
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Re: DoorDash removing 1-year cliff for equity grants
#2Good, 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.
Re: DoorDash removing 1-year cliff for equity grants
#3The 1 year cliff never really made sense...
It effectively gave the company a discount on employees who stayed only 364 days - or to look at it another way, a 'trial period' of 1 year where the pay was substantially less.
Re: DoorDash removing 1-year cliff for equity grants
#4Does DoorDash also grant RSUs based on fixed bonus amount and not number of shares? It's hard to believe this would be pro-employee.
https://www.teamblind.com/post/Lets-Boycott-Interviewing-at-...
Re: DoorDash removing 1-year cliff for equity grants
#5Good, 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.
Seems like a pro employer move too. Less people hanging around that have already decided to leave...just waiting on a vesting cliff.
Re: DoorDash removing 1-year cliff for equity grants
#6I 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.
Re: DoorDash removing 1-year cliff for equity grants
#7Good, 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.
I totally agree with the above, and have commented on it many times before, but note the 90 day standard is because that is the maximum amount of time allowed for ISOs by the IRS. To allow for conversion after that time (e.g. 5-10 years seems to be what a lot of people are pushing for), the ISOs convert into non-qualified options. Still worth it in my opinion. Even better would be for the IRS to change the law (not sure if it's a law or a reg), because with companies staying private so much longer it's a different world.
Re: DoorDash removing 1-year cliff for equity grants
#8awesome
Re: DoorDash removing 1-year cliff for equity grants
#9Does DoorDash also grant RSUs based on fixed bonus amount and not number of shares? It's hard to believe this would be pro-employee. https://www.teamblind.com/post/Lets-Boycott-Interviewing-at-...
I think it's common in the industry to see RSU grants shown as say, "$50k" - but that's $50k in stock as of the grant time. Once the grant is finalized, the value of the RSU grant grows with the stock. ie, if the stock is $100, then it's the same as 500 share grant.
This Blind post is saying that Instacart/Stripe says you only get $50k no matter the price of stock? How would you even structure that kind of grant? Why not just make it a bonus?
Re: DoorDash removing 1-year cliff for equity grants
#10Does DoorDash also grant RSUs based on fixed bonus amount and not number of shares? It's hard to believe this would be pro-employee. https://www.teamblind.com/post/Lets-Boycott-Interviewing-at-...
I think it's common in the industry to see RSU grants shown as say, "$50k" - but that's $50k in stock as of the grant time. Once the grant is finalized, the value of the RSU grant grows with the stock. ie, if the stock is $100, then it's the same as 500 share grant. This Blind post is saying that Instacart/Stripe says you only get $50k no matter the price of stock? How would you even structure that kind of grant? Why…
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.