And that’s not to mention the hefty tax bill that comes on top.
Often employees can’t afford to foot the bill – which has to be paid up-front and in cash – so disengaged employees stay working at the company when they’ve lost all motivation, rather than losing their hard-earned investment.
Instead of forcing employees into this unpleasant corner, Pinterest has granted all its employees a huge grace period of seven years. This is great news for workers but what did it mean for employers?
Effectively, this makes Pinterest’s stock options much more valuable as compensation – so the company can offer increasingly attractive compensation policies and pull in the very best new recruits.
It also means that employees who are already on board won’t be forced to stay where they finally feel like they’re ready to fly the nest – no more disengaged employees damaging the morale of the entire team.
If other companies follow suit and adopt a similar principle, it could change the entire employee landscape for start-ups – making it easier to attract top talent and keep the most engaged employees on board.