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by admax88qqq
1065 days ago
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That is a purposefully bad take of "my definition" Sure the RSUs available today are zero sum. The company has a finite value today, and thus your share of the compensation available today is a zero sum game across every participant in the corporation. But your compensation _over time_ is not zero sum, as the value of the company can grow, both within the current market and as the current market grows _by your own definition._ |
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If you look at the whole picture, you will see that “to align employees with company goals” is simply “to incentivize employees to make shareholders richer”.
Shareholders usually own 90+% of the stock, while employees ownership is in single percentages at best. That includes early employees.
The deal for Capital is very simple: give away few percents of stock and make Labor grind tirelessly to increase value of Capital by orders of magnitude.
Percentage wise everybody wins, both Labor and Capital (so called not zero sum game), in absolute terms however the distribution tells a different story.
Another counter-example: Imagine startup fails or is acquired at decreased valuation: will be it zero sum or not?
Well, employees options are wiped out first, VC capital gets first claims to money pool, Founders have second claims after VCs (or would have made liquid in separate deals), while regular employees are the ones who screwed.