stock options

  • Senate plans disastrous tax on vesting that could kill stock compensation

    Senate plans disastrous tax on vesting that could kill stock compensation

    A proposed tax that charges people as their startup equity vests instead of when they cash it out and actually have money to pay the taxes could wreck how tech companies recruit talent. And the industry doesn’t have much time to mobilize to get this tax changed. Read More

  • Why Uber may see a fresh flood of departures in the not-too-distant future

    Why Uber may see a fresh flood of departures in the not-too-distant future

    Last year, we told you about the employees at Uber who were seemingly handcuffed to the company, noting that those whose shares were vested can’t afford to quit. By February of this year, Uber had struck on one way to give restless employees a way to cash out. Read More

  • Some tweaks to build employee loyalty Crunch Network

    Some tweaks to build employee loyalty

    Two years here. Three years there. Another five somewhere else. Frequent job-hopping used to be a red flag, suggesting a candidate was unfocused and disloyal. That stigma seems to be gone. Changing jobs might be the best way to score a salary bump and move up the career ladder. And younger workers, those driving every startup machine, are more likely than older ones to switch employers. Read More

  • Uber lawsuit alleges employees were misled on equity compensation

    Uber lawsuit alleges employees were misled on equity compensation

    An Uber employee has filed a lawsuit accusing the company of misleading employees about their equity compensation. Uber “devised a fraudulent scheme to recruit highly sought software engineers,” according to the case.   The lawsuit claims that Uber promised a more tax favorable type of options at the time employees were hired and then later changed the plan. The… Read More

  • What To Do If Your Lead Investor Asks For ESOP Crunch Network

    What To Do If Your Lead Investor Asks For ESOP

    As valuations continue to rise, early stage VCs are getting more “creative” with their deal structuring. In particular, I’ve seen a rise in requests for ESOP shares to be allocated to lead investors for their “value added services.” It’s common to give ESOP to advisors for their value add, so why not investors? Read More

  • The Vote Is in and Twitter Gets its Tax Breaks. Now, What about Everyone Else?

    We just got word that the San Francisco Board of Supervisors has voted to approve the Mid-Market incentive plan that would give Twitter– and other companies– a six year payroll tax deferral for net new jobs if they move their headquarters into the city’s most blighted area. The plan will require a second and final vote next Tuesday to be implemented. The area in question… Read More

  • City Tax Battle Isn't About a Two-Year Break. It's About Repealing the Payroll Tax Completely

    City Tax Battle Isn't About a Two-Year Break. It's About Repealing the Payroll Tax Completely

    Not only is the San Francisco Chronicle lacking the professional courtesy to link to TechCrunch for first reporting the tech industry’s fears about San Francisco taxing stock options– the paper is also missing the broader point in the escalating debate. This isn’t about Zynga and Twitter negotiating a special deal, nor is it about a two-year deferral of payroll tax. Sure… Read More

  • San Francisco Wants to Tax Your Stock Options– All of Them.

    San Francisco Wants to Tax Your Stock Options– All of Them.

    Few people are aware the San Francisco has had a tax provision in its municipal code since 2004 that requires companies to pay a payroll tax on gains from employee stock options. No one pays it, and San Francisco hasn’t enforced it to date, but companies are becoming increasingly agitated that the city may change that policy at any time. The number of high profile and high value… Read More

  • Newsflash: Working for Google early on makes you rich

    This lady’s name is Bonnie Brown. She’s a skillionaire. She wasn’t always rich, though. Back in 1999, she was making $450 a week as a masseuse for Google, which at that time had 40 employees. Boy oh boy, Google must have known it was going to be huge to hire a masseuse for only 40 people. The last company I worked for had over 300 people and there was no masseuse and no free… Read More

  • Breaking: Steve Jobs Gets Paid Lots Of Money

    Forbes has come out with the list of highest paid CEOs and guess who’s on top? You guessed it, Stevie Jobs. While Jobs took a $1-a-year salary like the Google Guys, those stock options he got in return made for an excellent monetary gain. Since Apple stock did so fantastic during 2006, Jobs made more than $646 million through the compensation and is probably taking a shower in… Read More

  • Former Apple CFO Told To Pay Up – Big Time

    When the SEC is on your back and you’ve been backdating stock options, you’re kind of in a tight situation. So when former Apple Chief Financial Officer Fred Anderson was offered a deal to pay back $3.5 million bucks plus a $150,000 fine, you can bet your iPod he took it. The charges date back to 2001 when Anderson was working for Apple and was granted multiple stock options that… Read More