Hacker News new | ask | show | jobs
by drewmol 3085 days ago
>It would be the right decision in the long term, but the short term will hurt.

It seems there's quite a bit of incentive to target short term gains for many of the relatively new tech companies. When tons of early employees hold incredibly valuable stock options, which tend to be more valuable than their salary's, this creates an organization wide incentive to drive those stock prices as high as possible during their tenure. Those early employees gain position and influence, then use it to influence company culture and direction.

Is assume this contributes to the reason why it's so hard for behemoth companies to be nimble and quickly change direction.

1 comments

It's hard for any large organization to be nimble and quickly change direction, eg. the government, military, unions, religions.

If anything, stock options incentivize longer term thinking. Instead of quarter to quarter goals, stock options reward goals years in the future.