Jack Dorsey’s Block Will Allow Employees to Choose Cash Compensation Instead of Stock

Silicon Valley’s fortunes are based on rising stock values. But BlockThe fintech company founded by Jack Dorsey is starting the new year by offering its employees an unusual proposal: accepting cash instead of shares.

According to documents seen by Fortune. “The program reflects our commitment to empowering employees by giving them greater control over their compensation, fostering a culture of trust and autonomy,” the company says in the documents.

The shift to compensation at Block comes amid a moment of seizure and continuous layoffs in the company, like Fortune has previously reported. Although Block’s share price has risen more than 30% over the past year, ending Monday’s regular session at $91.94, it remains well below 2021 levels, when it was trading as high as $268.

Two current employees said Fortune that Block’s volatile stock price had become a problem and a topic of open complaint, particularly for workers who were hired or given new RSU compensation grants when the company’s stock was much higher between 2020 and 2021. Employees who received RSUs during this peak have effectively seen their total salary decrease, as their shares became worth less than when they received them.

In the filing, Block says it expects the all-cash compensation option to “improve employee satisfaction” and give Block a better competitive advantage, helping it “attract and retain top talent.”

A Block spokesperson did not respond to emails seeking comment on the planned compensation changes. Block, which operates payment processor Square, money transfer app CashApp, tide music transmitter and installment payments platform Afterpay, was founded more than a decade ago by Dorsey, one of the co-founders and former CEO of Twitter.

Under Block’s new plan, employees can customize the amount of the equity portion of their compensation, which currently comes in the form of restricted stock units that vest over four years. Employees will be able to select any amount of their RSU compensation in cash, distributed as part of their regular salary, not as an initial lump sum, equal to the RSU grant price (generally the current stock price). The same offer will apply to performance bonuses. The plan is expected to roll out next year for Block employees in international regions.

Offering workers an all-cash compensation option is an unusual move for an established technology company. Even if a company is experiencing a decline in its stock, as has happened with companies like Meta and BreakEmployees are generally only offered what is known as a “top-up,” or an additional equity award to make up for any difference in a person’s agreed-upon level of compensation.

Over the past year, Dorsey has taken a more active role in managing the company under his official title of Block Head. He proceeded to enact a reorganization and multiple rounds of layoffs of more than 1,000 people, imposed a strict cap on hiring and staffing, ended employee performance improvement plans and closed CashApp’s UK operations and canceled a planned international expansion of the company. application. The company also shut down its TBD development platform and ordered employees without mentioning Jay-Z’s namea board member who has since become part increased scrutiny given his friendship with fellow rapper Sean “Diddy” Combs, who is awaiting trial in prison on multiple charges of sexual assault.

While the option of receiving a cash bonus may not improve morale much at Block, which suffered another blow with a series of layoffs a few weeks before the holidays, as Fortune However, this is a very welcome change. The two current employees said they would prefer to be paid all in cash, even if it meant less potential earnings, rather than have compensation tied up in stock.

Are you a Block employee or someone with knowledge or advice to share? Contact Kali Hays securely via Sign at +1-949-280-0267 or [email protected].

This story originally appeared on fortune.com