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Talking stocks, trading, and investing in general - Page 705

post #10561 of 11195
Quote:
Originally Posted by brokencycle View Post

I wouldn't work at Amazon because I don't want to take a cut in guaranteed income to move to a higher cost of living area, but to each their own. 

This exactly.

If a person is worth X then why would they reasonably take 1/2X and the rest 3 years in the future? It's one thing to be at elite income levels and have options and extra forms of compensation, but we're talking about folks in top 10 cost of living areas having to live off of much less, scrape by in some instances.
post #10562 of 11195
Quote:
Originally Posted by brokencycle View Post

There are pros and cons to both sides, obviously.  I know people there on the programming side, and my wife knows people in non-technology roles.  It is certainly odd for mid-level individual contributors to have such a high percentage of their income in stock options that vest over like three years.  I think it plays off people's loss aversion and creates golden handcuffs.

I wouldn't work at Amazon because I don't want to take a cut in guaranteed income to move to a higher cost of living area, but to each their own.  I will say that a lot of my college classmates went to places like Google or other established Silicon Valley based tech companies and did get stock options or stock as bonuses, but it wasn't 50% of their income.  I also know people who went to startups and equity was the largest part of their income.  It worked out for some, others not so much.

There's definitely different mechanisms and different incentives that can be employed but I was reacting to the concept that "you more or less get hosed" if you have a form of deferred comp as part of your compensation package. That's just a stupid thing to say.

Also, the thought of a person being worth X, and then accept .5X now and .5X in three years is a non-starter as that's not how things get structured. It would of course be structured that one would end up with multiples of X is things work out properly, as of course, one needs a return on the risk.
post #10563 of 11195
Quote:
Originally Posted by idfnl View Post


This exactly.

If a person is worth X then why would they reasonably take 1/2X and the rest 3 years in the future? It's one thing to be at elite income levels and have options and extra forms of compensation, but we're talking about folks in top 10 cost of living areas having to live off of much less, scrape by in some instances.

No one offers .5x. Generally if one is moving positions to a higher position they will get 1.25x + .5x in future comp.

 

One benefit of future comp is that you can ask other companies to match what you are losing if they want to poach you. Generally you can get 75c on the dollar. 

post #10564 of 11195
Quote:
Originally Posted by MSchapiro View Post
 

No one offers .5x. Generally if one is moving positions to a higher position they will get 1.25x + .5x in future comp.

 

One benefit of future comp is that you can ask other companies to match what you are losing if they want to poach you. Generally you can get 75c on the dollar. 

 

Can confirm, happening to me right now.

post #10565 of 11195
Quote:
Originally Posted by brokencycle View Post
 

 

Can confirm, happening to me right now.

My current employer has a 3 year cliff vest, which is not the best policy for employees IMO. 

 

Although serious stock price appreciation can make it worth the wait. 

post #10566 of 11195
Quote:
Originally Posted by MSchapiro View Post

No one offers .5x. Generally if one is moving positions to a higher position they will get 1.25x + .5x in future comp.

One benefit of future comp is that you can ask other companies to match what you are losing if they want to poach you. Generally you can get 75c on the dollar. 

It's not exactly the negotiating position I'd want to have forcing a new employer to make up for someone elses income deficiency.
post #10567 of 11195
Quote:
Originally Posted by idfnl View Post

It's not exactly the negotiating position I'd want to have forcing a new employer to make up for someone elses income deficiency.

If it's industry standard you're not going to have to force a new employer to do anything.
post #10568 of 11195
Quote:
Originally Posted by Piobaire View Post

Bezos should be jailed. Just saying.
Did he make a food desert?



He does seem like kind of a dick, which is reason enough in my book.









Get it? Book?
post #10569 of 11195
Quote:
Originally Posted by MSchapiro View Post

No one offers .5x. Generally if one is moving positions to a higher position they will get 1.25x + .5x in future comp.

One benefit of future comp is that you can ask other companies to match what you are losing if they want to poach you. Generally you can get 75c on the dollar. 

Sorry to be stupid, but what is the "future comp" here? Like a deferred bonus or stock grant?
post #10570 of 11195
Quote:
Originally Posted by lawyerdad View Post

Did he make a food desert?



He does seem like kind of a dick, which is reason enough in my book.









Get it? Book?


If you go over the the State Farm thread someone is trying to buy a book.



Of business.
post #10571 of 11195
Quote:
Originally Posted by lawyerdad View Post


Sorry to be stupid, but what is the "future comp" here? Like a deferred bonus or stock grant?


In my case, I was referring to long term incentive plans or it is common, if you make a move within a couple month of when a bonus gets paid out, to pay a sign on bonus that covers the missed annual bonus or defer a start date until after the bonus has been paid.

post #10572 of 11195

You two should be jailed too.

post #10573 of 11195
The only time I could see the deferred comp issue get in the way of a move is if you were in an industry where it was highly uncommon, and for some reason you have it, or if you're in an industry where it's common but your package is egregiously atypical. When it's industry standard however it's just the price of poaching talent.
post #10574 of 11195
Quote:
Originally Posted by brokencycle View Post

You two should be jailed too.

Dibs on top bunk!
post #10575 of 11195
Quote:
Originally Posted by lawyerdad View Post

Dibs on top bunk!

Just buy yourself a big bottle of salad dressing if you know what's good for you. mwink[1].gif
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