The NASPP Blog

Earlier this week, Barb blogged about her two cents on Facebook’s IPO. I know I’ve said it before, but I’ll say it again – it’s hard not to get caught up in the hype of a hugely anticipated IPO because we do stock compensation for a living. I feel like this is what it’s all about – we’re supposed to be excited about these things – this is the proof that all these dreams of riches from stock compensation can actually pay out. Of course, I do realize that Facebook’s IPO is sort of like winning the stock compensation lottery – this outcome can’t be replicated in every company, and we shouldn’t promote it like that. Yet, we can quietly relish all of the attention and focus on the rewards that stock compensation will generate for Facebook employees. So, in today’s blog, I add my $0.02 as well – bringing the total perspective on Facebook’s IPO to a whopping four cents this week.

Google Alert Overdrive

My Google alerts are brimming to the rim with Facebook references. I’m pretty sure that’s been the only topic of discussion this past week. It’s like everywhere I turn – the evening news, my inbox, the newspaper – it’s all Facebook references. Okay, so now I’m guilty of contributing to that, but we have to indulge a little, right? The nice part of receiving Google alerts is that I get snippets of a lot of different information. I wanted to share some of the interesting and fun tidbits that I encountered this week during the overload.

Test Your Knowledge

By now many of us have heard about some of the more “famous” IPO shareholders. Among them is the artist who painted the Facebook headquarters that was brought into the limelight earlier this year because he holds millions in stock options. Who else has won the Facebook lottery? Fast Company magazine had a piece last week, covering the list of “The Facebook IPO Players Club“. So, test your knowledge – who were some of the lesser publicized folks on that list? One is none other than Reid Hoffman, cofounder and Executive Chairman of LinkedIn. Apparently he recognized Facebook’s potential in the early days and is credited with introducing Mark Zuckerberg to Facebook’s first real investor. It’s said that he personally invested $40,000 in Facebook, earning him a rumored 0.5% stake. You can browse the full list for more details.

Senator Levin Gets Involved

What would a stock option windfall be without Senator Levin chiming in about the evils of the corresponding corporate tax deduction? For those who are wondering what I’m talking about, Barb has blogged about Senator Levin’s many efforts to repeal the corporate tax deduction that companies receive relative to stock options. Facebook’s IPO certainly did not escape Senator Levin’s watchful eye; in fact, in a statement from the Senate floor, he labeled Facebook as another example of why the “tax loophole” that allows companies to take stock related tax deductions should be closed. Will he ever give up? Not this week, and not this IPO.

Lawsuits Already? Really?

With so much hype around the IPO, the unfortunate thing is that there is room for failed expectations. As this blog goes to print, word is emerging that shareholders are already filing lawsuits. I won’t go into the publicized details (or speculative details) about why in today’s blog. I can’t help but think, though, about all those Facebook employees who still can’t touch their stock compensation for several months, and wonder how bumpy the ride to riches will be. Lock ups can certainly put a damper on the stock compensation windfall dream; we’ve seen it before – paper windfalls obliterated overnight by a declining stock price. Hopefully Facebook won’t face too much turmoil and it will only be a matter of time before employees convert their paper gains into reality. After all, we all love a good fairy tale and I, for one, would love to see a happy ending.

-Jennifer