Mohacsy's Safe Portfolio Member Forum

[santafe2]

During periods when I was not managing my own company I most often worked at public software start-ups as an analyst, product manager or in a technical sales capacity. At these companies compensation is almost always weighted heavily toward stock options and stock based performance awards. One of the best pieces of advice I got early on was to always sell stock as it vested. That is, don't play roulette with small company stock where you work - An all your eggs in one basket argument. This story reminded me how dangerous it is to be heavily invested where you work.

When SVB and First Republic collapsed, so did their employees’ savings.

The two California-based banks encouraged workers to buy company shares, and top employees often received much of their pay in stock awards. Now shares of both banks, which once traded for hundreds of dollars each, are worth pennies in over-the-counter trading. Employees are facing the whirlwind loss of money they planned to use for retirement, kids’ college educations and other big-ticket expenses, according to interviews with more than a dozen current and former workers.