Time for Employees to Cash Out of Facebook

On Monday, October 29, the employee lock up will expire and employees will have the chance to cash out of their stock. Given that employees at start ups are often paid below market salaries and that a significant portion of their compensation is in stock, they certainly deserve the chance to realize some gains. Especially since the company was built on their sweat.

If there’s a strong employee sell off, however, we can’t necessarily take that to mean that all is doom and gloom over how the employees see the future of the company and its stock. What people often fail to take into consideration is the price of living in the Bay Area. With postage stamp sized houses selling at the $2MM mark, $5 gasoline and a failing public school system, many of FB’s employees may already have an idea of how they are spending their games. Selling for them may well be a necessity to get into the housing market or pay for school etc.

We’ll know more at the close of trading on Monday, but before then, here are some articles that lead us through Facebook’s filing, IPO and aftermath.

Facebook IPO on Wikipedia

OMG! Facebook Files for IPO

Facebook IPO – Who Will Get Richer?

Facebook IPO: The Art of Pricing the Right Pop

Facebook IPO Price: $38 per Share

The Facebook Distribution Dilemma

Facebook’s Ambition Collides with Harsh Market

Will Facebook Employees Line Up to Cash Out?

Update from 10/29 a.m. The First of 3 Lock Ups Just Expired