Column Five for Focus:

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Cashing Out: The Great Surge for Tech Company Employees to Unload Equity (Infographic)

Hat tip The Atlantic

Category: Corporate Management, Digital Media, Technology

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2 Responses to “Tech Company Employees Unload Equity”

  1. forwhomthebelltolls says:

    I have to strongly disagree that a “key driver” for cashouts is “fear of an imminent tech bubble burst”. I work almost entirely with tech startups and these organizations make it quite clear that options are in lieu of cash salary. It is a form of deferred compensation. Many of these employees hold stock from several, if not tens of now worthless startup ventures. When your deferred comp actually comes to fruition you harvest it.

    Add in that so many of these companies are located in the priciest cities in the US and it doesn’t take a genius to figure out why people cash in paper gains to pay for “hard” assets such as a roof over their heads.

  2. dsawy says:

    Also add in many of the employees will have non-ISO stock plans that typically have a four or five year vesting schedule and after a block of stock vests, you often have a limited time (up to one year) to exercise the option which requires either buying the stock at the optioned price, or an exercise of buying & selling in the same day.