I think more and more people know about equity. We should focus on making that said equity more liquid for private companies.
So many founders get rich early by selling their stocks to investors when raising money. Most of the time, employees just can't because the board won't let them.
If we allow employees to sell their stocks after they are vested you reduce the amount of risk they take when accepting a lower salary for higher equity. It would also stop the mentality of considering equity as zero when evaluating offers and give more financial flexibility to employees.
There is so much money circulating in private markets, but employees just can't access it. This seems pretty unfair to me.
Counter argument: more liquid equity -> less incentive for equity holders to put effort in the company's success (they can simply sell and then glide, versus hold and put effort in their job).
Comments
I think more and more people know about equity. We should focus on making that said equity more liquid for private companies.
So many founders get rich early by selling their stocks to investors when raising money. Most of the time, employees just can't because the board won't let them.
If we allow employees to sell their stocks after they are vested you reduce the amount of risk they take when accepting a lower salary for higher equity. It would also stop the mentality of considering equity as zero when evaluating offers and give more financial flexibility to employees.
There is so much money circulating in private markets, but employees just can't access it. This seems pretty unfair to me.
Isn't this almost certainly by design?
Counter argument: more liquid equity -> less incentive for equity holders to put effort in the company's success (they can simply sell and then glide, versus hold and put effort in their job).