If the Shoe Fits: Buy Them with Stock
by Miki SaxonA Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here
Do you do whatever it takes to hire, including a “ready, fire, aim” stock allocation methodology?
Can you slip on Joe, Jean or Pat’s shoes?
- From the minute Kristy walked through the door Joe wanted her on his executive team. Her energy was as high as his own. She was smart, articulate, with a keen sense of humor; she understood the commitment required by a startup and her family supported her. While salary wasn’t an issue, Kristy said another startup had offered her a lot more stock than Joe mentioned. She wasn’t as strong in some areas as he would have liked, but it would be so great working with her… So Joe offered Kristy 5% more stock than the other company and more than any other member of his team.
- If Jean didn’t find a good UI designer she would be forced to use a contractor or fall behind schedule, so when she interviewed Richard, she was ecstatic. Richard’s technical skills were excellent, but he demanded an additional 25,000 shares above what comparable team members had received. Afraid to continue looking and unwilling to consider a contractor Jean convinced her boss to make the deal.
- Pat hated hiring, seeing it as a necessary evil that took time away from his real job of building the company. When he found a candidate who could fill a role he did whatever it took to land the person quickly. His actions typically involved substantial extra stock, since he had limited cash and perks to offer.
Is this lazy or just the inexperienced use of a sophisticated tool (stock)?
Founders and bosses that consider a ready, fire, aim methodology an acceptable way to award stock are doomed.
Is buying candidates with stock a short-term solution guaranteed to tear the team apart as word spreads (more on that subject later in the series) and people feel betrayed or a viable way to solve your staffing needs?
Is buying candidates with stock actually shorthand for bad culture?
For more information see Insanely Stupid Hiring.
Option Sanity™ short-circuits ready-hire-aim actions.
Come visit Option Sanity for an easy-to-understand, simple-to-implement stock process. It’s so easy a CEO can do it.
Warning.
Do not attempt to use Option Sanity™ without a strong commitment to business planning, financial controls, honesty, ethics, and “doing the right thing.” Use only as directed.
Users of Option Sanity may experience sudden increases in team cohesion and worker satisfaction. In cases where team productivity, retention and company success is greater than typical, expect media interest and invitations as keynote speaker.
Flickr image credit: Kevin Spencer
