2023-05-06 21:26:00
company
solaredge
+4.33%
closure:0
opening:290.87
High:294.26
low:280.52
cycle:—
Page Quote News Graphs Company Profile Recommendations
More articles on the subject:
which employs nearly 5,000 people and is traded on Wall Street at a value of over 16 billion dollars. The company is enjoying a huge increase in sales of its energy converters, which is actually the brain behind the absorption and utilization of solar energy through the panels. While the panel is a type of commodity, the company’s converters express the ideal-efficient translation of the sun into electrical energy.
And given that the world is going there, Solaredge is on a high tide. There are squeaks here and there, in the US there is considerable competition with Anphase which holds a share similar to that of Solaredge and the fear that additional competition will enter. Above all this, there is a slowdown in the American market when California, which was a significant engine of growth, is expected precisely due to the regulation to decrease in solar activity. In Europe Solaredge is growing at a high double-digit rate despite competition from the Chinese and other manufacturers.
Solaradge is a technological company whose technology is intended for the improvement and optimization of its own production processes as well as for the development of new product systems and there are quite a few of them – the field of batteries is becoming very significant in the latest reports and the share of batteries will continue to grow.
One would expect that given the importance of the technology, Solaredge employees would be treated to generous option packages. It turns out not really. The employees did not receive new options in 2022. In the last year, the employees exercised options that embodied an average benefit per employee of 14.2 thousand dollars. It’s not a little, but it’s nothing compared to over 300,000 dollars per employee in Monday, and in general – it’s low compared to the prominent Israeli technology companies.
Moreover – the value of the options as of the end of 2022 expresses a total benefit of 75 million dollars, this is 15 thousand dollars per employee. On Monday it is 10 times.
Even in the allocation of shares at a discount (RSU) Solaredge is relatively stingy. We are talking about plans to purchase shares at a 15% discount in the amount of 15% of the salary. We calculated and found that it is a total benefit of tens of millions of dollars for employees, low compared to large technology companies.
Solaredge allotment of options
Solaradg RSU
So Solarage is stingy with employee options – Monday is generous; Who is right and what does that actually mean? The truth is that the answer may surprise you – it means that Solarage does not have to “bribe” the employees to get there. It provides them with more security, than frenetic technology companies of which Monday is seen as one. It is much more stable, they will not send the workers home tomorrow morning. Employees accept the fact that their package of options-benefits is smaller, but it is safer – there are many technology companies that granted options like crazy, but the options collapsed to zero – Clatora, Riskypaid, Pagaya, Weeks (in the last two years), Faber and others. Monday is an extreme example of success, but most of the high-tech is different – where the employees received meager amounts if any from the exercise of the options (unless they are veterans who received the options at zero prices).
You pay for security and stability and that’s where the difference comes from. Another advantage is the stability of the grants. It is not necessarily controlled because it depends on the share price, but as soon as the distribution is small and the activity is safe (which of course does not contradict the growth in these companies) then it is unlikely that there will be a situation where an employee receives a benefit of millions and the one that came six months after it is worth zero. There is not this unfair discrimination between the employees as happens in most companies because of the changes in the stock price. Monday has employees who have become millionaires but the new employees are worth zero in terms of options. It is unpleasant to sit in such company and realize that you ate it because you arrived half a year too late.
So who is right in allocating the options? Solarage’s approach is more balanced and actually hides an advantage for employees – stability. Today, when layoffs are constantly taking place, this is probably the most important thing for employees. Monday’s approach and that of most technology companies is mainly aimed at bringing in and retaining employees, it is no longer needed. It has become an employers’ market rather than an employees’ market. The generosity of the options is ultimately at the expense of the investors – they are diluted, so as long as you don’t have to give huge packages to retain employees – Solage has a healthier approach, also from the point of view of the investors.
Comments to the article(0):
Your response has been received and will be published subject to the system policy.
Thanks.
for a new comment
Your response was not sent due to a communication problem, please try again.
Return to comment
#Solarage #stingy #options #employees #BizPortal