> It's risk versus reward. What we see here, if true, is that the risk remains the same but the reward has been significantly chopped.
No, I don't think that's the case. The reward is being chopped because the risk has been chopped, right?
Presumably the company is worth much more and is much closer to IPO than when these employees joined, right?
I guess it's wrong if at the time of joining, the employee's risk/reward calculation used all of the equity they would be eventually granted. But that seems foolish because at any time they could be fired and be left with only their vested shares.
No, I don't think that's the case. The reward is being chopped because the risk has been chopped, right?
Presumably the company is worth much more and is much closer to IPO than when these employees joined, right?
I guess it's wrong if at the time of joining, the employee's risk/reward calculation used all of the equity they would be eventually granted. But that seems foolish because at any time they could be fired and be left with only their vested shares.