Will Bitcoin replace stock-based compensation? \ stacker news ~bitcoin

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Will Bitcoin replace stock-based compensation?

537 sats \ 12 comments \ @kr 26 Mar bitcoin

Had this thought earlier today.

I’m no compensation expert, but it seems like basically every tech company has some form of stock-based compensation for employees, and I suspect employees prefer this over cash only because their cash loses value over time.

I wonder if MicroStrategy, Tesla, or Block has considered offering employees the ability to receive performance packages in Bitcoin rather than in company shares.

Thoughts?

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89 sats \ 4 replies \ @jp305 26 Mar

Companies use stocks as incentive: if the company does good because you put the effort, stock should appreciate.

Bitcoin will always appreciate regardless of worker performance. So in this sense it might be more suited for base comp or bonuses?

18 sats \ 3 replies \ @kr OP 26 Mar

sure, i can see the value of using stock-based compensation for a company, but it seems like it’s a sub-optimal outcome for nearly all employees.

shouldn’t a job well-done be recognized with money? i was under the impression the only reasons tech employees actually like stock-based compensation is because a) everyone else is doing it, and b) because dollars lose value over time.

60 sats \ 0 replies \ @jp305 26 Mar

I always saw stock comp as lottery ticket unless: A) high growth cie backed by "major venture" B) mega cap Always ended up looking for more base comp instead.

For me, having a fixed percentage of base comp in bitcoin would definitely be an incentive over 100% fiat!

0 sats \ 1 reply \ @nickfostphone 27 Mar freebie

Nada. This isn’t why companies do this at all.

Most employees will rarely think about speculating against the dollar. Not everyone is a finboy

58 sats \ 0 replies \ @Undisciplined 26 Mar

I actually have wondered if stock-based compensation will be more common on a bitcoin standard.

The issue I'm imagining is that if you have an appreciating currency, rather than employees getting regular raises to keep up with cost of living they would need to get regular pay cuts to adjust for declining nominal revenues.

Employees don't like pay cuts, so an alternative would be to have smaller fixed salaries with larger amounts of profit sharing.

I think you're right though about employees preferring to just get monetary compensation. Profit sharing is theoretically more efficient, because of the incentives, so if you're doing profit sharing it has to amount to more total compensation.

58 sats \ 2 replies \ @grayruby 26 Mar

Don't most companies issue shares for stock based comp?

If so, the cost is dilution of shareholders not a direct expense whereas buying bitcoin to issue to employees would be a direct expense.

28 sats \ 1 reply \ @kr OP 26 Mar

yes, but dilution is a real expense to all shareholders - just an accounting trick to avoid calling it an expense

58 sats \ 0 replies \ @grayruby 27 Mar

Agreed, as a shareholder I hate stock based comp but I understand why companies and employees like it. I would rather have Bitcoin but I don’t see it becoming a thing any time soon other than maybe with MSTR.

0 sats \ 0 replies \ @Coinsreporter 27 Mar

Companies do this lure employees and have them working with greater enthusiastiasm because they also hold some sort of share in the company.

Companies won't be compensating employees in Bitcoin because if they are the one who start orange piling employees, they will leave the company and be with Bitcoin forever. The fear of losing their employees is what stopping them from compensating in Bitcoin.

0 sats \ 0 replies \ @ZezzebbulTheMysterious 27 Mar

Eventually, working for fiat currency will be seen as the losing move that it always has been.

0 sats \ 0 replies \ @BitcoinIsTheFuture 27 Mar

Yes, and some companies will market it very cleverly! “It’s the responsible thing to do!”