The Incentives of Matching Stock Options

Stock options became a thing in the late sixties. You incentivize people to triple down on the company's stock instead of putting that money elsewhere. The classic example of this strategy going horribly wrong was enron, where employees had enron stock in their retirement accounts. Because it's a private company, you can't sell those ouptions. In general, equity in private companies is just, however problematic it is in public companies,. It becomes even more problematic in private companies for exactly the reasons we're talking about. If your employer does badly, there's a good chance you get laid off at exactly the same time that your stock goes down. And if the company does well, then