Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

Will other big startups follow Pinterest's new employee tax rules?

Recently read this posthttp://fortune.com/2015/03/23/pinterest-employee-taxes/about Pinterest told employees that if they have beenwiththe company for at least two years and choose to move on (or who are terminated), they now can hold onto their vested stock options for another seven years (post-departure) without exercising them. By doing so, Pinterest has removed a massive tax liability that haunts the dream of many successful startup employees.

Pinterest stops asking employees to make a difficult choice, will other top tech startups do the same? Will this means worse employee retention?

4 Replies

Amir Yasin
0
0
Amir Yasin Advisor
Developer, Architect
I don't know if they will but they should follow this example. Do you really want people sticking around in your company who aren't there because they believe in what you're doing and want to help you get there faster? Seems like a win for everyone. They go off and do something they're passionate about and you get an open spot to find someone who's passionate about what you're doing.
Jono Spiro
0
0
Jono Spiro Entrepreneur
Technical Lead at Carlypso
I've been burned so many times by options. The company saves money on salary by offering you something that they're in total control of, that you probably can't afford, that probably won't ever be worth anything, and that they'll most likely get back 3 months after they let you go for whatever reason.

This sounds like a huge step forward, and a simple one. I wonder what negative benefits/consequences there are for the employer.
Chris Murphy
0
0
Chris Murphy Entrepreneur • Advisor
Director of Corporate and Legal Affairs at E2open
I definitely think it is great for employees and helps solve a pretty big dilemma for employees (which I have dealt with myself). However, I don't know that all employees who are tempted to leave have lost a passion for working at a company - sometimes you just get a better offer, and this does make it a little harder to hold on to such an employee. Also, this isn't as easy as it seems from a record keeping perspective, unfortunately. I don't think it would justify in itself a reason not to do this, but it's not so simple as it might seem. Lastly, any options would convert to NQSOs if they were ISOs if you really do wait to exercise (not necessarily an issue, but important to understand).
Chandan Miskin
0
0
Chandan Miskin Entrepreneur
Experienced CRM Professional
This is a very good move and shows benevolent attitude of the management there. I had to let go of stock of shares (substantial numbers in 000s) just because I decided to move on due to issue with the management. People remember every small gesture (& never forget bad memories for ages together) and this one will go a big way is promoting goodwill for the brand.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?