The confusing thing happening over the last 1-2 years (and in previous cycles) is that many current employees are also down significantly on their stock grants in public big tech. Employers seem to see this as ok, and that’s the risk they take when taking stock, yet they are willing to go and pay a new hire with an updated price that means they make far more than you. It incentivizes leaving and wouldn’t cost the employer anything to just re-up your pay to the original goal since they’ll have to pay it anyway to a new person and lose the ramp up time
I’ve been wondering about this myself. If you work in publicco tech, all their grants are priced in dollar equiv. So as you say, bouncing jobs right now should give you a ~50% equity boost, if you’re on a 4 year today at your current co. Surely though this is obvious & companies are doing top ups?
Or, since they’re all entering hiring freezes / layoffs maybe they don’t can and want the attrition
In terms of number of shares or dollar amounts? Because tech has taken a massive slam in the last year in the markets.
Employees should see that like a lot of investors do, which is a discount on blue chips. It changes the calculus a bit if you don't plan on executing on vest or holding after you do for tax reasons, which makes a lot of sense. But if you're considering a role at a big tech right now and plan to last a few years it's not necessarily a hit.
Dollar amount. It’s a hit comparatively because anyone joining today would make 100s of thousands more for some roles and someone who took the hit over the last year can just go reset their stock elsewhere. Holding for tax reasons makes no sense for public companies. Vested shares count as standard income.
