SHOULD YOU OPTIMIZE FOR ALL-CASH COMPENSATION?

Summary from the TLDR Web Dev newsletter

Tech companies often allow employees to choose their stock and cash ratio, especially if the company stock had a drastic fall. However, the choice of how much stock to get can be complicated - on one hand, employees have access to “insider information” such as usage statistics and business dashboards. On the other hand, even with this information, employees can’t control how the stock will perform since it depends on a number of factors, such as market expectation. This blog shows numerical experiments on what will happen depending on your stock/cash ratio if you were a Shopify employee.