Microsoft Millionaires Grapple With Wealth

[kcchief19]

Microsoft Millionaires Grapple With Wealth

There are a million lines in here that I find disturbing, but I think this is the topper.

"I think of working at Microsoft now as my nonprofit," said C.J. Rosenblatt, who adds that she will sort out a more appropriate philanthropy when her sons get a little older. "It is the stuff I do so my brain doesn't develop cobwebs."

I think some of these people subscribe to the Scott Boras Theory of How to Win Friends and Influence People.

[Alan T]

I always enjoyed the stories of the admin assistants and custodial engineers and such that worked at places like Microsoft and thanks to timely selling of stock options became wealthy far beyond what their job position could have gotten them in 20 years.

I think of it as success stories. I am happy for them...

[Ksyrup]

The company could have turned out to be worthless. It was like a form of contingency payment - and it paid off. Good for them. What's so disturbing about people becoming rich? I wish I was in their position, but I don't hold it against them because they were in the right place at the right time.

[dawgfan]

A very interesting article. It really just scratches the surface of the late-'90's wealth phenomenon that happened here in the Seattle area. A book can and probably someday will be written going into detail the socialogical impact all this sudden wealth had and continues to have on the region. Remember, it wasn't just Microsoft making people rich - there was also the dot.com boom led by Amazon, Infospace, RealNetworks and others. There was crazy-money being made in 1999 as things swelled leading up to the new year.

I wonder sometimes with what-ifs:
- What if I'd tried harder to find a job at Microsoft when I graduated from college in '92?
- What if I'd joined my friend in working at Amazon not long after they started business instead of going back to school in '95?
- What if I'd been hired-on as a full-time worker instead of a contractor at MS in '98?
- What if the tech-bubble had lasted longer?

For the record, I was hired on full-time on December 28th, 1999. My initial options are (split-adjusted) around $58 per. Nearly all options I've received since then are under water as well, so I'm one of the people that thinks the switch to stock grants is (theoretically) a good thing. I also give credit to MS for announcing a plan to give some token value for all those underwater stocks.

I've done fine financially at MS and taken advantage of the ESPP program to save money for a down-payment on a house, and my salary is reasonable. Still, you look out at the parking lot every morning and see all the fancy cars - endless varieties of new BMW's, Audis, Lexus, new T-birds, Mini-Coopers, etc.; you hear veteran employees talk about their fancy homes and vacations and cool toys, and it's hard not to feel some jealousy. After all, for the most part these people were simply at the right place at the right time. Yes, the more effective an employee the more options you were granted (in theory at least) but the reward was really far beyond the actual impact these employees had on the value of the company.

[kcchief19]

Originally posted by Ksyrup
The company could have turned out to be worthless. It was like a form of contingency payment - and it paid off. Good for them. What's so disturbing about people becoming rich? I wish I was in their position, but I don't hold it against them because they were in the right place at the right time.

I'm not holding anything against them and I don't find anything disturbing about them becoming rich. I find it disturbing, self-centered and an affront to humanity that someone in this society thinks they have problems because they are so rich.

Are there problems that come from managing wealth? Certainly. But if my worst problem is that somebody might treat me differently because I have money or I have so much money I don't know what to do with it, I would be on my hands and knees thanking god 24/7 and not whining about my "problems." I'd love to see how someone who has "problems" because of their wealth would handle working for $5.25 an hour and trying to raise a kid.

[dawgfan]

It's easy to think that if we were rich, we'd all handle it much better than those whiners you hear about that complain about the trouble that comes with having lots of money. Yet, until you're in that position, it's a bit unfair to judge.

What if having all that money fucks up your relationships with the people that matter to you? What if it completely changes how people interact with you and think of you? What good is having lots of money if it damages the things that are really important - the relationships you have with people that matter to you?

I can see where you're coming from. I see big lottery numbers and I'll periodicaly drop $5 just for the fun of daydreaming what I'd do with all that money - I'd love to be in a position where I have to worry about the downsides of wealth. But I also realize there are downsides. I don't think I'd tell very many people if I were to become rich, precisely because I wouldn't want my relationships to be affected by it.

I also think people overreact when they hear wealthy people talking about the downsides to their money; I suspect most of these newly rich people still have a good perspective on their wealth and understand their good fortune. Sure, there are a few that let it get to their head and feed their narcissism, and they make good copy for a reporter writing a story. But there are far more of these people giving back to the community and using their money to help others.

[Alan T]

Originally posted by dawgfan
A very interesting article. It really just scratches the surface of the late-'90's wealth phenomenon that happened here in the Seattle area. A book can and probably someday will be written going into detail the socialogical impact all this sudden wealth had and continues to have on the region. Remember, it wasn't just Microsoft making people rich - there was also the dot.com boom led by Amazon, Infospace, RealNetworks and others. There was crazy-money being made in 1999 as things swelled leading up to the new year.

I wonder sometimes with what-ifs:
- What if I'd tried harder to find a job at Microsoft when I graduated from college in '92?
- What if I'd joined my friend in working at Amazon not long after they started business instead of going back to school in '95?
- What if I'd been hired-on as a full-time worker instead of a contractor at MS in '98?
- What if the tech-bubble had lasted longer?

For the record, I was hired on full-time on December 28th, 1999. My initial options are (split-adjusted) around $58 per. Nearly all options I've received since then are under water as well, so I'm one of the people that thinks the switch to stock grants is (theoretically) a good thing. I also give credit to MS for announcing a plan to give some token value for all those underwater stocks.

I've done fine financially at MS and taken advantage of the ESPP program to save money for a down-payment on a house, and my salary is reasonable. Still, you look out at the parking lot every morning and see all the fancy cars - endless varieties of new BMW's, Audis, Lexus, new T-birds, Mini-Coopers, etc.; you hear veteran employees talk about their fancy homes and vacations and cool toys, and it's hard not to feel some jealousy. After all, for the most part these people were simply at the right place at the right time. Yes, the more effective an employee the more options you were granted (in theory at least) but the reward was really far beyond the actual impact these employees had on the value of the company.

Very similar to me.. I worked for a large telco in the mid-90s working on their large internal WAN.. I was new to stocks and options then, so could have done better.. I decided to work for a smaller company in 1999 and like you came in with my initial options set at 56 per share.. The Dot.com fall made almost every single one of my options I have received since then to be under water... Out of my 6000 to 7000 options, I probably only have about 750 of them worth anything (pennies) right now..

Thankfully I always chose to not gamble with ESPP and to invest it wisely. My company gives a 15% discount off of the lower of two prices each period (start of ESPP period and last day of period) for ESPP costs, and instead of holding mine for it to go up and gain, I always have sold day I received them for that 15% minimal gain, and in good quarters I have gained as much as 300%.

ESPP has helped me put a downpayment on my house, on two cars, and other things for the family.. I still have all the options in the hope that one day who knows what might happen.. but I think I have resigned myself to the fact that I doubt I will ever be rich, but if I am smart with my money, I should be ok...