#1. Multiple companies are shifting in this direction and utilizing 1 year grants (vs 4 year) as a lever (Stripe and Lyft). I would say Amazon sometimes is here. When the stock is rapidly growing their new grants are rather small (which makes it seem one and done over the past decade.
#2. Meta. Very formulaic. Does not factor in existing comp or past grants for the most part.
#3. I would put Amazon here. Their vesting schedule is more weighted to even years 3-6. Vesting only 5% in year 1, 15% year 2... I have also been at other companies that did 3 year long term incentive plan offerings which would vest in 3 year cliffs. Each year you would get a new 3 year grant.
4. Traditionally Microsoft.
5. Netflix, Shopify, and there seems to be a trend here with more companies giving the option for more cash (although none as generous with the pure cash component than Netflix).
ah makes sense! i heard Amazon usually will have huge sign-on bonus to make up the vesting schedule in the first two years. That sign-on bonus actually gives more flexibility (similar to #5 sometimes) so a bit hesitant where it should be.
i'm curious what are the typical companies in each of the 5 Philosophies buckets. looks like meta and google is #2, amazon is #4, and netflix is #5?
#1. Multiple companies are shifting in this direction and utilizing 1 year grants (vs 4 year) as a lever (Stripe and Lyft). I would say Amazon sometimes is here. When the stock is rapidly growing their new grants are rather small (which makes it seem one and done over the past decade.
#2. Meta. Very formulaic. Does not factor in existing comp or past grants for the most part.
#3. I would put Amazon here. Their vesting schedule is more weighted to even years 3-6. Vesting only 5% in year 1, 15% year 2... I have also been at other companies that did 3 year long term incentive plan offerings which would vest in 3 year cliffs. Each year you would get a new 3 year grant.
4. Traditionally Microsoft.
5. Netflix, Shopify, and there seems to be a trend here with more companies giving the option for more cash (although none as generous with the pure cash component than Netflix).
ah makes sense! i heard Amazon usually will have huge sign-on bonus to make up the vesting schedule in the first two years. That sign-on bonus actually gives more flexibility (similar to #5 sometimes) so a bit hesitant where it should be.
Good insight! I'll have to dig in a bit more there.