At this point, not much surprises me. But just when I need a reminder of how out of touch some folks can be from the "big picture" that surrounds them, I get this post from Erick Schonfeld at TechCrunch:
Google Employees Watch In Horror As 60 Percent of Their Stock Options Drown
I'll let you read the entire article but the gist of it is that, as Google shares fall below the $329.78 level, a significant tranche of employee options fall under water. The article goes on to point out that, at current prices, 61% of Google's stock options are under water. And here's where it gets absurd:
Only eight days ago Google’s shares were trading at $411 and three months ago they were above $450. In that time, a lot of paper wealth has disappeared and along with it incentive for many recent hires to stay. Of course, the stock could rally and everything will be honky dory again, but if Google’s market cap is being fundamentally reset along with the rest of the stock market, it could face some serious retention issues in the coming months. The free food and transportation are great perks and all, but let’s get real here. Without the financial upside those stock options represent, Google employees will start looking elsewhere.
Looking elsewhere? Good luck to them. I'm sure there will be opportunities for enterprise entrepreneurs who are willing to forgo near term security for the potential of future wealth. But for the vast majority of Google employees, it's ASININE for them to be lamenting their stock options. Does it suck to see your optionality go down the tubes? Of course. But worrying about that right now is like Marie Antoinette making sure her face was properly powdered and lipsticked as the guillotine was falling.
What most Google employees should be thinking right now is...
- Wow, I'm damn lucky to have a job with a salary and benefits right now
- I sure hope I've added enough value to keep my job because a lot of smart people are looking for work
- My company has tons of cash, a dominant market position and relative stability, I'm luckier than 90% of those I know
Seriously folks. If you're working for a technology bellwether like Google, Microsoft, Apple, Research in Motion, IBM, etc...and you're feeling bummed out that your stock options are kaput; that's fine. But if you're still so much in the clouds as to what's transpiring that you're thinking, "I'm going to leave and go to a place where I can get richer, faster" then I don't have much sympathy for you. Get a grip on reality. Seriously.
Disclaimer: At the time of writing, the author and/or the firms affiliated with the author maintained a long equity position in Google [GOOG] and Microsoft [MSFT]. The author and the firm reserve the right to alter their investment positions at any time in the future. The content on this site is provided as general information only and should not be taken as investment advice. Content should not serve in any way as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author. Any action taken as a result of information or analysis on this blog is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Googler,
I suspected as much which is why I directed the headline to call out TechCrunch and not you guys. Great to hear that you, and many like you, have the right perspective. You work for a great company that is going to not only survive but get better in this tough environment. You're fortunate.
Posted by: Jason Wood | October 11, 2008 at 11:21 PM
Do not think Techcrunch is even somewhat accurate in its depiction of the mood of Googlers. Speaking for myself (and many of my friends that I've chatted with lately about this), we're still extremely happy to be working at Google. Good colleagues, interesting projects, and cool perks. I plan on staying at Google for the long term.
So no, Googlers aren't being whiney babies right now, despite what the slow-news-day Techcrunch site might have you believe.
Posted by: An annoyed Googler | October 10, 2008 at 07:05 PM
Great points indeed. The startup I'm advising just cut almost everyone's hours and will be in cash preservation mode for quite some time. The employees hurting a lot more than the Googlers. Focusing on the big picture, there are folks in much more precarious industries that will be losing their jobs altogether.
Posted by: Allan | October 10, 2008 at 02:24 PM
well said
Posted by: Chris Selland | October 10, 2008 at 01:18 PM