
Facebook's latest raise to cash out employees is disgusting - jasonlbaptiste
http://www.thisisgoingtobebig.com/2009/05/facebooks-latest-raise-to-cash-out-employees-is-disgusting.html
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gojomo
Sorry, but they've earned it. Facebook is raking in cash and users. It's
turned down acquisition offers that could have rewarded early employees.
There's little reason to doubt Andreesen's assertion they could be profitable
if they chose to, or doubt current management's projection of profitability in
2010.

Facebook is still strategically deferring other goals in favor of growth,
going for maximum expected-value rather than being risk-averse. That's the
right choice for their investors, who have broad portfolios.

But Facebook still wants to retain and attract excellent employees who are,
quite rationally, more risk-averse. Otherwise, employees with vested but
nontradable shares could only "diversify" their personal portfolios by leaving
Facebook and earning other compensation elsewhere. (Or, by making private
sales to third parties, a complication neither employees nor Facebook likely
prefer.)

The blogger's analogy to his own situation -- where he's working so that his
company "survives past the summer" -- is absurd. Do what Facebook's done, and
then compare your situation to theirs.

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bilbo0s
I wonder why they don't do profit sharing?

Oh wait!

Never mind.

As an aside, I have noticed more and more profit sharing in China recently.
Maybe it is only because my Mandarin is finally getting respectable, and I can
now interpret what was there the whole time. But it is an interesting
contrast. Our workers get 'cash-outs' or 'guaranteed bonuses' in the case of
bankers. Their workers are forced to share in the profits, AND losses of the
company. Time will tell which is the better incentive system I suppose.

One more thing I know people will get a kick out of, over there they also have
another crazy idea. If they make profits, they split it among the shareholders
as well! I think it was Yunnan that just made the largest payout ever to
A-share holders a few months back, March maybe. Largest payouts for China that
is, but there is a bit of a competition among the companies to one up each
other. Imagine that.

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ojbyrne
In the mildest of possible voices, I'd like to suggest that the reason some
facebook employees might be GODDAMN PISSED OFF is because they've seen a
smaller subset of employees cash out previously. Just my random guess. Or
something. Maybe something involving hiring lawyers, and pursuing lawsuits,
and things of that nature.

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menloparkbum
Yeah... other FB have already cashed out. Plus maybe the people pushing for
this have tons of stock they are threatening to sell to someone else, like the
rogue craigslist guy did to Yahoo!.

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ojbyrne
It was eBay, not Yahoo.

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menloparkbum
ah yes... thanks for the correction!

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ojbyrne
I'm kind of fascinated with minority shareholders.

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markchristian
Last night I went out for sushi with some co-workers (we work at a tech
startup). We were discussing whether it was really fair that we earned so much
more than the waiters/waitresses at the restaurant, especially given how
difficult we ourselves would have found their jobs to be.

We realized that it all came down to value. Who has generated more value in
the world -- folks working at Facebook for two years (currently valued at a
billion dollars, give or take), or someone selling trucks at a dealership
(apparent value zero, if this imaginary dealership is downsizing)? I think
it's pretty obvious that it's the engineers who've generated more (admittedly,
only monetary) value.

So, yes, Facebook is raising money to give back to the folks who made them
what they are. What monsters.

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johnnybgoode
The problem is the measures of value are skewed. When people on Wall Street
make even more money because they're subsidized by the government, it's not
because they've generated more value.

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timcederman
Sadly, whenever I see that the site is thisisgoingtobebig.com, I hesitate to
click. I can't say this article has changed my mind.

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johnnybgoode
I can see why he's upset, but the reasons behind this kind of thing go way
beyond Facebook. Why single them out?

To answer my own question, I guess they're a particularly annoying example.

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mishmash
Or to really answer your own question, you could give the rest of us other
examples to consider. :)

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ghost11
'Tis a fine bit o' trollin', indeed. One of the better attention-scamming blog
entries I've seen.

Next time, could you put in a few more references to "damn kids," and a photo
of the American flag, drifting over a car dealership, perhaps?

"Equity? These lazy Palo Alto kids want equity? Next time they'll want free
chocolate sundaes and health care!"

