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Chief
Compensation itself will not tank a stock. You’re taking a fairly complicated item (technically and emotionally) and distilling it down to one viewpoint and dimension.
Exact opposite has happened over the years
Chief
Back in the dot com bubble IBM was at the top of the tech word and advertised all cash compensation offers.
We aren’t there yet. Right now current employees may get special awards to make up for declines, especially high performers.
Our RSU bonuses are a tiny sliver of total ownership so it doesn’t have a material impact on lowering stock price
Pro
Usually the company reprices the options so you have the same number of shares outstanding. New grants are at the current price is roughly where the stock was a couple years ago at worst. People seeing their current options underwater leave and go somewhere else making older grants unexpected.
There will be some increase. But not as much as you imagine.
In this environment, stock issues are generally lower since -
1. Hiring freezes are limiting the number of new employees
2. Companies are stopping or reducing stock refreshers for current employees
3. Headcount reductions will release un-vested RSUs to be issued elsewhere
It’ll be the same as always. Nobody is going to make a dramatic change in stock compensation over temporary market movements