Does your company significantly reward high performers?
Mar 15, 2019
10 Comments
In Facebook we have the discretionary equity (DE) as a tool to reward top performers, as picked by the director, by giving them additional equity to vest over 4 years. The DE is 3-6 times the value of a typical refresher of that level.
This makes a good performer have a compensation well beyond competitive rates paid by other companies, so it’s used as a retention tool for top performers.
Does your company significantly reward high performers? 2X and 3X cash bonuses are fine, but they do not affect TC nearly as a Facebook DE. I heard that Uber years ago truly rewarded their top performers. What about Google, Amazon, Netflix, etc? Does Uber still have these 100%+ bonuses?
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You might see that your YoY TC hasn’t changed much but that doesn’t mean your performance has changed much either.
I’m seeing a TC swing of over $100K at the very least (sales).
With this multiplier, Exceeding expectations at Facebook will get you 25% of that. That’s about 200k * 0.2 * 0.25 = 10k more, a year, for an E6. Definitely not worth the time or effort done to exceed expectations for 2-2.5% of the TC or 5% of base.
Hence, Facebook singles out critical employees and showers them with sizable stock grants.
The question here is, are there retention tools like this in your company? Where do you work?