Uber paid cash to some laid-off employees for their unvested stock, but some of them are unhappy about the price it paid
When Uber laid off 7,000 people in May, it included an extra payment to some employees who were about to qualify for a tranche of stock to vest.
They thought Uber should have paid a more current price for the stock, or given them the option to keep the shares. Tech companies like Uber include stock compensation as part of an employee's total pay package. Often the amount of stock is negotiated when an employee first joins the company. An employee may even take less cash salary and more stock, which then vests over a number of years, typically four. So as employees contribute to the company's overall success and the stock price rises, employees can earn more on the stock than on their other pay.
For some people who were due to have a large tranche vest, those couple of bucks per share added up to thousands of dollars, one person told us. Uber confirmed the RSU payout was based on the average closing stock price for the month of April and says using the prior month has been its standard for layoffs for practical reasons, so the company can determine the total payout amount in advance when it issues the severance agreement papers.
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