[fishcakes]

I think the spirit of this is misguided and goes against the spirit of the compensation. The stock based compensation is designed to align everyone's incentives as well as filter for individuals who believe in the prospects of the company.

Hedging out your stock based compensation goes directly against this, and misaligns you with the rest of your company. I think if you don't believe in the companies prospects it is best to take another job or ask for more cash and less equity.

[mahyarm]

No not really. Being an employee itself is a 'hedge against risk'. As an employee with this kind of 'insurance' you still want the company to do well and have the stock go up in value because it personally benefits you.