> Doesn't this incentivize people who are unhappy and want to leave to stay?
So does any other kind of "golden handcuff" stock option or time-vested stock grant.
So does any other kind of "golden handcuff" stock option or time-vested stock grant.
Also, consider this. Someone who joined one month before IPO would get more from the kicker than someone who worked for years and then left 1 month before IPO.
You could even recognize higher risk of earlier employees by issuing special shares which have some mechanism by which if they leave, those shares may still deflate, but at a slower rate than later ones. e.g. for every time-period distribution of shares, these shares receive some fraction of the new distribution.