Facebook employees apparently work pretty hard. They get huge rewards, when their stock goes up, so they want to company to succeed.
Once the stock stops shooting up, they stop caring about the company. They won't make money from their stock options, they'll make money from getting promotions or a good bonus. Impressing their manager is going to be more important than the company's overall success.
Employees will lose interest, and managers will have to introduce more rules, to "incentivise" the workers (and other managers).
You raise a very interesting point. The aspect were a employee's motivation is two-fold. One were it is stock-option motivated and the other were progress in the company is the motivation. Now they should and you would of thought that they would be one and the same. But from personal experience they are seperate.
Gets down to the classic: it's not what you do but how you are seen to be doing it.
Facebook employees apparently work pretty hard. They get huge rewards, when their stock goes up, so they want to company to succeed.
Once the stock stops shooting up, they stop caring about the company. They won't make money from their stock options, they'll make money from getting promotions or a good bonus. Impressing their manager is going to be more important than the company's overall success.
Employees will lose interest, and managers will have to introduce more rules, to "incentivise" the workers (and other managers).