Its just another form of indenturing workers, by holding these ballooning stock vesting schedules over their heads in the uneven employer/employee relationship. The employer gets stability from the employee, while being able to fire the employee after a few years just before they vest, saving the company $$$ and maintaining control for the current shareholders.

> while being able to fire the employee after a few years just before they vest

Never ever agree to a vesting schedule where it takes longer than a year to get your stock. 1 year cliff maximum.

Yeah, a fair vesting schedule should evenly vest as you work, ideally as often as possible (eg: every month or week). Its akin to compounding, as a savings account holder you want the interest on your account to compound as often as possible.

to keep it to the point it should come month by month along with the standard compensation, since you take a pay cut in exchange for stock it's only fair to have it delivered month by month, at most with a clause that after x year the stock trickle stops and you get an equivalent increase in your pay

sadly there's plenty sucker willing to gift their work away so any hint of people having a clue about the risks in cliffed vesting become unhirable troublemakers in most startups

That will only happen if techies/employees all over a region band together and don't let themselves be pushed into some kind of prisoners dilemma.

It's already happening. Anyone who's worked at a startup before and has been burnt is unlikely to accept the vesting and the work conditions. That's in part why it's to hard for companies to recruit experienced tech workers.

At the same time, there is an endless stream of young people willing to break into the industry at any costs.

The age and experience of people in a place tells you a lot about what the company really value.

I've never gotten this stock options thing. I'm a consultant. I do stuff, invoice and get paid. The idea of accepting potential payment in some sort of play money, that I might get if things go well, and that might be worth something at some later date, seems crazy.

Sure, I know that a few founding employees have done very well. But has anyone done very well, recently?

If it's not fraud it's pretty damn close. Certainly sounds illegal, and definitely should be if it isn't.

These former employees should just get a good employment lawyer.

I agree it's wrong and wish it could be stopped. But why do the employees trust that they will become vested? They can see the risk in their agreements and see what happens to their co-workers.