A package which appears to the novice to be worth N dollars, but where statistically speaking many employees end up in the hole because they mishandle the tax implications, or where statistically speaking many employees end up in difficulty attempting to sell their shares because they miss some deadline or fail to meet some other condition, etc.
There is a need for simplification and standardization because the average employee offered options today does not have the qualifications to assess the value of an equity package — it's not like direct monetary compensation which is easy to understand.
Or at least there's such a need for reform from the perspective of the employee. From the perspective of an employer, if statistically speaking many employees mishandle their complex options packages, then the company ends up money ahead, having driven down labor costs by offloading hidden risk onto their employees.
A package which appears to the novice to be worth N dollars, but where statistically speaking many employees end up in the hole because they mishandle the tax implications, or where statistically speaking many employees end up in difficulty attempting to sell their shares because they miss some deadline or fail to meet some other condition, etc.
There is a need for simplification and standardization because the average employee offered options today does not have the qualifications to assess the value of an equity package — it's not like direct monetary compensation which is easy to understand.
Or at least there's such a need for reform from the perspective of the employee. From the perspective of an employer, if statistically speaking many employees mishandle their complex options packages, then the company ends up money ahead, having driven down labor costs by offloading hidden risk onto their employees.