Facebook's early secondary policy inadvertently caused employees to quit to sell stock
Justin Fishner Wolfson · SpaceX IPO: Inside the Firm That Owns 1% · Sourcery with Molly O'Shea · Jun 14, 2026 · at 19:46
Justin Fishner-Wolfson details how early secondary liquidity restrictions at Facebook created perverse incentives before structured tender offers became standard.
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“Facebook got big, and it turned out that the company kind of couldn't buy all their shares that were, that people were selling, because the dollar amount just got so big, and the volume got so high, and they basically started telling people, like, if you sell shares, we're gonna fire you, right? And so people just started quitting, right? Because they wanted to sell, and they're, like, so they created this, like, very perverse incentive of, like, okay, well, if you're a current employee, you have to become a former employee, To sell.”
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