Key facts
- Big Tech stock awards have historically incentivized employees to stay with companies.
- Shares of Meta, Alphabet, Amazon, Apple, and Microsoft have at least doubled since the end of 2022.
- Layoffs have reminded some workers that stock compensation is not guaranteed.
- The AI boom has created new paths to potential equity gains.
- Some workers are using vested stock to fund startups or pursue new career opportunities.
- Stock compensation timing, vesting schedules, and stock performance can impact financial outcomes.
Stock compensation has long served as a powerful retention tool for employees at major technology companies, offering significant financial upside. However, recent waves of layoffs and the rapid growth of the artificial intelligence sector are altering this dynamic.
For some, like former Google employee Rob Waters, layoffs have served as a catalyst to leave, even if it means forfeiting unvested equity. Waters, who was offered a new role at Google after his team was eliminated, chose instead to cofound an AI startup, Kanawai AI, accepting a transition from a high six-figure income to zero.
Similarly, Julie Zhu, a former Apple product designer, leveraged her accumulated vested stock to gain the financial security needed to pursue her entrepreneurial venture, Odd One In. She aimed for a three-to-five-year financial runway before resigning after nearly four years at Apple.
Yousuf Imran, after approximately six years at Google, also used his stock compensation to fund his new AI sales tools company, setting aside $350,000. He noted that the potential for life-changing equity in AI-focused companies like OpenAI and Anthropic influenced his decision to pursue equity in his own venture.
Dave Lewis, who previously worked at Google, Amazon, and Microsoft, found that accumulated stock wealth provided a financial cushion after being laid off by Microsoft. This allowed him to be selective in his next role, ultimately joining AI startup Emberos as head of partnerships.
The timing and performance of stock awards remain critical factors. One former Meta employee benefited from joining when shares were low and subsequently surged, while a former Microsoft employee in her 60s questioned her retirement plans after a sharp decline in Microsoft's stock price following her layoff.