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Twitter looks to stem 'punch in the gut' of worker exodus

Sharon Gaudin | March 11, 2016
Social network offers big bonuses to keep employees from jumping ship.

"Twitter stock has been under fire, losing around 60% of its value over the past year," said Olds. "Since Twitter has used restricted stock as a large part of their employee compensation, those employees have taken quite a hit to their net worth. In a Silicon Valley atmosphere where there are more jobs than talent, there's a good chance that many of their best employees will jump ship if they get a chance."

Olds said he believes Twitter employees receive average salaries for Silicon Valley, but make up for it, at least in theory, in company equity.

"If the stock goes down as much as Twitter's has, the employees are taking it in the shorts, compensation-wise," he said. "This isn't necessarily rats fleeing a sinking ship, it's more like rats looking to find a better ship. Twitter isn't going to go out of business anytime soon, but the steep drop in their stock signals that the market doesn't think they have the right business model yet and that Twitter's high-growth days might be behind them."

 

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