It’s a well-known secret in Silicon Valley: Big tech companies employ “resters and vesters”; employees who collect full pay and stock without having to do much — or any — actual work.
Though it might sound like an administrative error — employees who have, for whatever reason, fallen through the cracks — there are a few very good reasons why companies allow employees to “rest and vest,” according to former “coasters” interviewed by Business Insider.
Keeping Top Talent Away From Competitors
Some tech companies use “rest and vest” jobs as a way to claim top talent and keep it away from the competition, according to Manny Medina, a former Microsoft executive.
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At Microsoft, he saw how the tech giant locked up talent in fields like AI, robotics and quantum computing.
“You keep engineering talent but also you prevent a competitor from having it, and that’s very valuable,” he told Business Insider. “It’s a defensive measure.”
Buying Silence
“Rest and vest” can be used as a way to buy an employee’s silence about the problems facing a project before they depart a company.
“Everyone knew I had a big mouth and would speak out,” said a former “rest and vest” Facebook engineer. “He figured, ‘Hey, it costs us next to nothing keep this person happy for six months.'”
Like a paid period of transition, employees can use “rest and vest” time to cool off and start looking for other work.
Hanging Onto The Most Effective Employees
Some employees can simply do more in a shorter period of time. “10x engineers,” for example, are supposedly 10 times more effective than other engineers, or so the legend goes.
“They might know where the bodies are buried on some project, be called in as a last resort to debug a project, or they are known as a great pinch hitter,” said the former Facebook engineer.
Though “resting and vesting” can be beneficial to companies, it can kill the careers of employees, especially those “working” on long-term research projects, according to an engineer at X, run by Google’s parent company Alphabet.
Engineers can spend years “never shipping anything.”
Frequently Asked Questions
What does rest and vest mean in Silicon Valley?
Rest and vest describes employees at big tech companies who collect full pay and stock without doing much, or any, actual work. Former coasters interviewed by Business Insider said companies allow it for several deliberate reasons.
How does rest and vest keep talent away from competitors?
Former Microsoft executive Manny Medina said tech companies use such jobs to claim top talent and keep it from rivals. At Microsoft, Medina saw talent locked up in fields like AI, robotics and quantum computing, calling it a defensive measure.
Can rest and vest be used to buy an employee's silence?
Yes. A former Facebook engineer said the arrangement was used to keep them quiet about a project's problems before leaving, since it cost the company next to nothing to keep them happy for six months.
Why might companies keep highly effective engineers on rest and vest?
Some employees, such as so-called 10x engineers, can do more in a shorter time. They may know a project's hidden problems, be called in as a last resort to debug, or serve as a reliable pinch hitter.
What is the downside of rest and vest for employees?
An engineer at X, run by Google's parent company Alphabet, said resting and vesting can kill careers, especially for those on long-term research projects, who can spend years never shipping anything.