Question that must be asked: isn't giving equity harmful long-term for tech performance? Almost everyone who is capable of being there, is already there because there are few other fields that pay so well, especially fields open for everyone to join. So it's not like promise of high equity comp will attract more or better people. But once people cash out, don't they just retire, thus excluding themselves from labour pool? Why would anyone want to work on society-crushing, toxic, hated fields in an insane rat race? Certainly it's good for them, but is it good for the industry?
So yes the geniuses early retiring problem is a thing, but there could be a way of managing this IF the government wasn't useless - secure phantom options.
The idea would be that you wouldn't own the actual shares but a fully legal option that you can cash out at a fixed age and would be legally protected from bankruptcy etc.
So the idea would be you could cash out say up to £1m (enough to buy a property) before the age of 30, another £1m before the age of 40, another £5m at 50, and then all of it at 60.
You'd have skilled people remain in the workforce for longer but wouldn't overstay into their pensioner years.
That sounds like a really stupid idea, for sure one could just take a loan secured with these options and if they were guaranteed by the government the interest rate would be same as gov bonds rate as these will be effectively gov bonds. So one could swap it for cash at no cost.
Question that must be asked: isn't giving equity harmful long-term for tech performance? Almost everyone who is capable of being there, is already there because there are few other fields that pay so well, especially fields open for everyone to join. So it's not like promise of high equity comp will attract more or better people. But once people cash out, don't they just retire, thus excluding themselves from labour pool? Why would anyone want to work on society-crushing, toxic, hated fields in an insane rat race? Certainly it's good for them, but is it good for the industry?
So yes the geniuses early retiring problem is a thing, but there could be a way of managing this IF the government wasn't useless - secure phantom options.
The idea would be that you wouldn't own the actual shares but a fully legal option that you can cash out at a fixed age and would be legally protected from bankruptcy etc.
So the idea would be you could cash out say up to £1m (enough to buy a property) before the age of 30, another £1m before the age of 40, another £5m at 50, and then all of it at 60.
You'd have skilled people remain in the workforce for longer but wouldn't overstay into their pensioner years.
I'm certain there's other ways of doing it too.
That sounds like a really stupid idea, for sure one could just take a loan secured with these options and if they were guaranteed by the government the interest rate would be same as gov bonds rate as these will be effectively gov bonds. So one could swap it for cash at no cost.
[dead]