Are there any safer options than a keylogger?

Is Patty McCord not telling the whole Truth on Netflix Stock Options as compensation?

• I'd like to know if the following is true or not as I am not a netflix employee and do not know the specifics: I'm looking at: http://hbr.org/2014/01/how-netflix-reinvented-hr/ar/1 On slide 112, she says:  "Employees are free to leave us anytime, without penalty, but nearly everyone stays." This isn't quite true, from my experience.  Stock options (unlike RSUs, which other more transparent companies provide as compensation) usually have to be exercised within a short period time of leaving the company.  The forced exercising of options significantly decreases the value of those options.   You have to stay the full 10 years to to enjoy the full compensation package. On slide 111, she says: "These options cost employees less than half what such options would cost in the open market, and are from pre-tax salary, so are a great deal." I feel this is another deception, if my understanding holds true.   What does it mean when she says half of what stock options on the open market?  10 year options?    That's not a great deal, considering the massive employee churn you get at Netflix which makes these stock options really just 2-3 year options (well, probably on average they are 1 year options or so if you look at the entire package which you get allotted on a monthly basis up until your departure). Why does Netflix feel their solution is more 'transparent' and 'honest' than RSUs?  If they really want to live up to their values, wouldn't the honest thing to do would be to compensate  staff in RSUs which have none of these hidden traps and are not the deferred compensation they talk about not having above?

• Answer:

  I believe Patty McCord is accurately describing the Stock Option plan at Netflix. The general principle behind the Netflix Stock Option plan is to eliminate the "golden handcuffs" that encourages employees to stay at a company for no other reason than to wait for compensation to vest. If a person decides they no longer want to work at Netflix, they may change jobs without jeopardizing or otherwise impacting the value of their options. Netflix employees under the current stock option plan can choose to exercise their options up to 10 years from the date issued, regardless of their employment status. While you are working for Netflix, employees may only exercise options during trading windows. Employees who leave Netflix, they are free to exercise their options at any time up to 10 years after the date they were issued. Employees are not forced to exercise their options after separating (voluntarily or not) from the company. All options issued to an employee are vested immediately (this is true of the match on the 401k as well). You may join Netflix, wait for your first batch of options to be issued, quit the next day, and still have up to 10 years to exercise your options. As far as the "cost" of the options, I have never done the comparison myself. However, I have been told by others the "cost" of the options is a "good deal" and much better than buying options on the market.