Understanding downsides of 1 year equity grants
Oct 5, 2021
16 Comments
First off — I agree that 4 year equity grants are strictly better due to upside of the whole grant appreciating over time. However my time at Lyft with a 4 year grant hasn’t really gained much at all 🤣
Everyone loves Netflix who famously pays all cash — there’s very limited upside in this package. A pre-IPO company like Stripe may only give a one year grant, but there is potentially huge upside for all grants vested prior to IPO. At a publicly traded company like Lyft, 1 year grants are essentially like cash if you just sell on vest (which you probably should), so in my mind this is somewhat equivalent to an all cash offer like Netflix.
At I missing something here?
TC: 570k
comments
Same goes with 1yr grant. Be it all cash, be it 1yr grant, you have limited upside (outliers exist)