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by eliasbagley 2117 days ago
How would this work when substantial equity is involved? It makes sense that if you drop your hours, your salary would drop in proportion. But if a substantial amount of your total comp is from unvested equity, it doesn't makes as much sense. Your employer can't take away unvested equity, right? If so it seems like your employer would have much less incentive to want to do something like this - you may be working half as much, but your total comp only drops by like 25% or something.
3 comments

In some places I've worked, HR has a hidden target total compensation for each employee. When they make compensation adjustments, they try to bring you slightly closer to that goal. In this case, they might drop just your salary proportionally since that appears fair, but future adjustments will be lower or zero until your target compensation is above your actual compensation.
Good question. I can see that being an issue in the US.

In my case, I actually work in IT rather than tech. Equity is never part of the deal. I think equity is much more common for US employees than it is for European.

You'd get an adjusted equity package.