February 24, 2004

Using Stock To Motivate People

Stock-options seem almost a default part of the compensation package in computing start-ups these days. However, it's not clear that the rich pickings will return following the dot-com crash, so is a 1% or 0.5% chunk of the company any more than a nice bonus?

HBS Working Knowledge: The Leadership Workshop: Is Equity-Based Compensation a Good Thing? discusses the pros and cons of offering stock in order to motivate employees
, and it's something that Joel Spolsky pondered whilst deciding upon his company's compensation policy.

Thank God I've got a while yet before I have to start worrying about such things.

Posted by Adrian at February 24, 2004 10:12 AM | TrackBack

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Comments

My take on stock options is never take them in lieu of ready cash.
I'd take a higher salary or guaranteed bonus over any amount of stock options.

However, if the salary is good and you are happy, it's always worth asking if stock options are available also. If they do come good, it's better than a smack in the teeth innit.

Posted by: Darren at February 26, 2004 09:46 AM
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