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Google’s Approach to a Potentially Flat Stock Price

Is to innovate in how to give employees liquidity. Matt Marshall explains it here.

While Google’s stock price defied gravity through January this year — there are strong signs it may stall going forward (see graph below). It means that an employee hired a couple of weeks ago got their options at a price of $500, but now see the stocks valued at $481. If there’s little hope the stock will rise much, what’s the point of staying (aside from the apparently fun work atmosphere, which may be enough for many people, granted)?

That conundrum may be why Google has just introduced the options market, an online trading site that lets Googlers sell their shares to institutional investors — who are often willing to pay more than the current market price for an option to buy those shares in the future.

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