Back to Ownership

As we reflected on How we’re approaching liquidity as a long term company, one of the key considerations was whether to continue issuing stock options, or whether to discontinue them in favor of profit sharing and retaining ownership.

Here are the reasons we have decided to continue issuing stock options and even have plans to increase the issuing of stock options (including evergreen tenure-based and promotion grants in addition to initial grants).

• We’d like to give team members the opportunity for real ownership in Buffer, and for those who stay at Buffer and grow in seniority to become meaningful genuine owners of the company. To accomplish this, we need a way to issue options for new team members, and additional options for tenure and growth in impact.
• An ownership mindset is a core part of our culture and strategy. Having a team who feel a genuine sense of ownership is integral to making the equation of Buffer as a company work. We provide a lot of flexibility and aim to have a working environment that enables people to thrive and contribute long-term without burning out. This doesn’t work if team members don’t feel a connection to and a sense of ownership of Buffer. The ownership mindset is one element that motivates people to go above and beyond in order to make Buffer successful.
• There are few ways more powerful in creating an ownership mindset in the team, than giving people true ownership in the company. Combining this with documentation and education that helps in understanding that ownership stake they hold, is where it becomes especially effective.
• While I have no plans to stop working on Buffer anytime soon, it is prudent to think about succession planning even for a worst case scenario. This looks like having the key leaders of the company have an ability, if they choose, to earn more ownership over time. In the future, we could even consider ways for team members to buy in further into Buffer. The goal here would be for a small group of senior leaders to own a meaningful stake in the company, so that if they need to take on the running of the company, it is in the hands of people who understand and have been part of establishing the vision, mission, culture, operating principles and strategy.
• We do not have plans for an exit and generally do not even entertain those conversations. With that said, we cannot know the future, and it’s plausible there is a scenario where we are forced to strongly consider an exit as way to achieve an acceptable outcome, for example if there is a significant macro-economic or industry change we could not foresee. In the very unlikely event that we do consider and move forward with an acquisition offer, it wouldn’t feel right if the team does not have ownership to benefit financially from the outcome.