What utter horseshit. TLDR; - New hires get One year of equity only - No negotiation on the offer letter https://blog.coinbase.com/how-coinbase-is-rethinking-its-approach-to-compensation-9aaf7d5d638e
One issue here if you want to buy a house, most banks require 2 years of receiving rsus and 3 more years of vesting. This looks like it will disqualify many who work at coinbase and want to buy a nice house.
Why disqualify ? You are still getting RSU
Need 3 years of future vesting
Increase from 50 percentile to 75 percentile.... only 75
That's a big improvement! Especially for current employees.
They eliminated one year cliff, you vest immediately. That is awesome.
So I can join and then quit?
You clearly don’t know how this works lol
They learnt their lesson from owing every employee millions of dollars XD
Equity is not paid from company to employees. It’s paid by other shareholders.
It all comes from the company though. Stock compensation is an operating expense on the company’s balance sheets
I saw somewhere on the news that Stripe and Lyft did the same. Is that true? What happens at year 2 than?
They just give you another new grant for 1 year only.
What a bad decision. Target 75% of the market, get 75 percentile talent. No incentive to add long term value, only short term one year at a time value. Coinbase really is quickly leaning in to being a public company.
It's not 75th percentile of the "market", but a select subset of peers. I think paying the 75th percentile of Google, Netflix, and Snap comp numbers would be fantastic... So every coinbase employee is making more than 75% of all equivalent employees at these companies
I for one really like my new numbers. It is significantly more than what I used to make at FB. If anything changes drastically in a year, I can always go find something else.
significantly more than fb? You must've negotiated super bad at FB, or were hired into a higher level at Coinbase. When doing an apples to apples comparison of FB to Coinbase offers FB will come out on top >80% of times - that is not even considering FB refreshers.
Yup, hired into a higher level. I'm not a SWE FWIW.
One must somehow appreciate the genius marketing of how leadership is selling the new comp model as a net win to candidates... Really I think the only unquestionable improvement is the move from P50 to P75 target comp and removal of cliff. The rest is neutral or significantly worse (ie equity model) . As explained in other threads and https://tanay.substack.com/p/employee-compensation-and-one-year 1-year grants are typically worse and less worth than 4-year grants + stacked refreshers. I'd also question whether Coinbase is paying true P75. I bet coinbase is only benchmarking their 1st year comp against 4-year grant peers and completely ignoring the higher stock appreciation of 4-year grants and existence of stacked refreshers. For an apples to apples benchmark, Coinbase would have to benchmark its equity against other 1-year grant companies, which currently only includes stripe and lyft and compared to these Coinbase comp is P33. I hope word spreads quickly to candidates in the industry that this new model isn't as good as execs and recruiting make it sound. Don't let yourself fool with largish-looking 1st year TCs!
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What does it even mean? Every year pay is evaluated for everyone?
Yes