Lyft and Stripe have changed their compensation packages, eliminating the long-standing Silicon Valley practice of requiring employees to finalize the entire stock incentive in one year and require staff to stay for four years before getting full compensation. Did.
Stripe, an electronic payments startup that may be released soon this year, recently introduced a one-year vesting schedule for new employees, according to a copy of the offer letter reviewed by The Information. Listed earlier this year, Lyft introduced a one-year vesting schedule for existing employees after accelerating the timeline for new employees in mid-2020, according to spokeswoman Eric Smith.
Technology companies are testing new ways to recruit workers in the highly competitive job market and are accelerating their schedules as stock market volatility makes it difficult to price stock prices. Faster vesting schedules are often closely tied to fewer equity grants each year, which can also save money for companies with rapidly rising valuations.
https://www.theinformation.com/articles/stripe-and-lyft-speed-up-equity-payouts-to-first-year Stripe and Lyft Speed Equity Payments in First Year — Information