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Receiving shares in the company only creates skin in the game when the typical worker can materially affect outcomes. My employer has ~$1T market cap. I can move the needle on the projects close to me, but I can't do much to move that market cap, or our earnings, or anything else. I receive shares each quarter, and happily sell them immediately, precisely because I have next to no control over the outcomes. They are guided by systemic forces and leaders much more powerful than me.

(I don't see any of this as a problem, BTW, but I think it's worth pointing out.)




Side question - won't it be more profitable to sell some and keep some for potential future profits, so the overall risk is lower but you still profit potentially?


All depends on if the stock goes up or down! And therein lies the rub. If I had held on to all my stock that was ever granted to me, I might be worth $1-3M more than I am today. (Large range because I never bothered to calculate it.) But on the other hand, there were periods where the situation was seemed dicey and it was unclear if the company would stagnate. If that had happened, I might be worth $1-3M less than I am now!

So, rather than gamble, I did what I felt was prudent and sold all my stock. I've got plenty tied up in the well-being of the company already, from my unvested stock to my future career trajectory. Even the value of the real estate I own could rise or fall with the fortunes of my employer. I don't need my fate any more tied to or correlated with the company than it already is.


> Side question - won't it be more profitable to sell some and keep some for potential future profits, so the overall risk is lower but you still profit potentially?

Selling all your stock comp immediately is more about diversification of risk.

If rsus are a nontrivial aspect of your comp, then you're already extremely exposed to risk in your company's stock price stock price (if it tanks take a big pay cut and they might even lose their job).


No. If you wouldn't buy a company's stock before being gifted it, you should sell your company's after being gifted it.




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