Timeline for Layoffs- "Bonus" to cover cost of stock options?
Current License: CC BY-SA 4.0
16 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Feb 4 at 15:13 | comment | added | Neil Meyer | It is a novel twist on the startup equity scam. You are not giving them equity instead of a salary. You are giving them equity instead of severance pay. | |
| Feb 3 at 12:17 | comment | added | Job_September_2020 | Is it a public or private company in terms of stock trading ? Is your company's stock public traded ? or is it still private ? If it is private, then the stock may lose all its value if the company goes under ? | |
| Feb 2 at 21:53 | comment | added | shoover | What is your role in this question? Are you the employer, a still-employee, an ex-employee, or none of the above? | |
| Feb 2 at 21:17 | answer | added | keshlam | timeline score: 4 | |
| Feb 2 at 21:14 | vote | accept | Adrian Carr | ||
| Feb 2 at 21:10 | comment | added | Donald | Giving up stock equity is never a net zero transaction it can also be a negative more so than handing out cash. A company who has low cash flow, their stock worth, is like next to zero once they no longer have enough cash to remain open. Seems like a horrible deal from the perspective of the individual getting the stock, fired and instead being given something actually worth any monetary value, they are given the option to purchase something worth absolutely nothing. Stock in a private company like that is worthless, or specifically, only worth what someone is willing to pay | |
| Feb 2 at 17:44 | comment | added | joeqwerty | "How can I give my underpaid, soon to be laid off employees something without actually giving them something and also straddle them with an additional tax burden" - Doesn't sound like a great plan to me. | |
| Feb 2 at 17:40 | review | Close votes | |||
| Feb 8 at 3:08 | |||||
| Feb 2 at 16:56 | comment | added | Nuclear Hoagie | Why do you expect that the employees would all choose to buy company stock with a cash bonus? If I was given $4000, I don't think I would buy stock in the company that just laid me off. | |
| Feb 2 at 16:52 | answer | added | Aida Paul | timeline score: 6 | |
| Feb 2 at 16:31 | answer | added | Joe Strazzere | timeline score: 4 | |
| Feb 2 at 16:29 | comment | added | Aida Paul | You will need lawyers in either case, and tax advice (qualified) for anyone who wants to take part as capital gains which may be involved are not easy. | |
| Feb 2 at 16:27 | comment | added | Adrian Carr | @AidaPaul- good question. My thinking was that the stock options have legal agreements that might be hard to change. This was an idea to potentially not have lawyers involved. ;-) | |
| Feb 2 at 16:18 | comment | added | Aida Paul | Ok in what sense? And why go through all the gymnastics instead of simply issuing stock in exchange for the options, if that's what you want to do? | |
| S Feb 2 at 16:16 | review | First questions | |||
| Feb 2 at 16:57 | |||||
| S Feb 2 at 16:16 | history | asked | Adrian Carr | CC BY-SA 4.0 |