Rethinking Equity Compensation: From Lottery Ticket to Financial Wedge

Equity compensation offers the prospect of meaningful wealth to employees. However, tech workers should think of it as an investment, not a lottery ticket. For employees, this means considering risk, diversification, and taxes proactively. In turn, companies need to realize that the narrative of treating equity as a pledge of loyalty can ultimately... See more

I believe a new class of job-picking tools will emerge combining wealth management, career progression, and taxes. Glassdoor 2.0 will feel more like a PitchBook and less like a job board. Employees will be able to run projections and simulations that neatly tie considerations across their whole financial stack.

Employees often face four common challenges in understanding and managing equity: trading restrictions, concentrated risk, data asymmetry, and tax complexity.

Today, the financial infrastructure for employees paid in equity is nearly nonexistent. For those with little experience in the acronym-riddled realm of equity, the ins and outs of stock as compensation and its tax implications can be dauntingly complex.