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0 pointsskookumchuck7y ago0 comments

Oh pooh, I as a lower/middle class employee got a lot of stock options. They were worthless because the company stock sank, but I liked getting the options, and if the company had been managed better I would have made much bank.

> I'd wager most lower income folks would take the money, since that's food on the table.

Instant gratification is a large reason why lower income folks stay poor. (As for "food on the table", lower income people "invest" in lottery tickets. They clearly do have discretionary income.)

0 comments

LitFan7y ago

>(As for "food on the table", lower income people "invest" in lottery tickets. They clearly do have discretionary income.)

Low income people are desperate to get out of their situation because in a lot of cases, it's barely livable.

The information in the article shows that they're largely correct; A disproportionate amount of compensation goes to a small number of people - and that amount is so skewed that it can't possibly be based on performance.

If the system they're in appears illogical, you can't fault them for acting illogically.

Mirioron7y ago

It's not so much about performance, but their impact (responsibility). If the CEO of a small mom and pop shop says something racist online then few people will care, but when the CEO of Papa John's said something racist 11% of the valuation of the company disappeared. That's on the order of $100 million. People might've been laid off because of this or more likely, people didn't get hired because of this.

skookumchuckOP7y ago

> that amount is so skewed that it can't possibly be based on performance.

Of course it can be. I'll give another example - Microsoft under Gates/Ballmer/Nadella. As an MSFT shareholder, I am very, very happy with Nadella's results and he's worth whatever he's paid.

munk-a7y ago

Passing up a salary increase for stock options will occasionally pay off big, and if you have good confidence in the company go for it... but a lot of companies fail and those options become worthless.

You got no money out of your options, if you were asked about the options and could have declined them for a modest wage you would have made more.

(Also, your post needlessly and illogically attacks lower income folks, just give it a rest. Rich people buy fancy cars that are equally worthless instead of responsibly investing their money.)

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