CompensationDec 29, 2017
NewLavarBall
Uber/SoftBank Stock Payout
Curious what the payout will look like for employees who are selling shares back for this deal. How much does the discount come into play?
i hardly considered the discount. picked based on some specific financial goals (mortgage) and then added a decent amount just to diversify. nothing excessive, not retirement money. as money bags ^ said, a discount isn’t weird and it’s a great opportunity for employees to take something off the table. we’re just scrutinized a lot more than other such deals.
A discount is rather standard when investors buy common shares that have no liquidity preference as opposed to preferred shares . I don't know why people are all over the fact that there is a discount on the deal. We should be more interested in the reasons why the deal was limited to accredited investors... Not fair for everyone. Also we should all be happy that uber had such an exposure doing buy back and secondary giving liquidity to some early investor and releasing golden handcuff for early employees. I hope this will push more and more companies to do the same. I'm tired of hearing founders getting access to liquidity while their employees have no financial flexibility.
I completely agree. Do you know how limited the group was that got to take advantage. Obviously all the investors and execs but from a regular employee standpoint. Did all employees get to participate or just employees with options or a certain %/amount vested?
People are all over it because late-stage the value of preferred and common start to converge because they converge at IPO anyways. The discount is hefty for a company that will likely IPO in < 12 mos. e.g. When Pinterest did their Series G the preferred and the common sold at the same price, $11bn.