Tech workers may be better off selling their company stock

A Levels.fyi analysis, cited via Business Insider, suggests a “sell as it vests” approach could outperform holding employer stock for many tech workers. The example examined a senior Microsoft software engineer compensation package under two scenarios: selling Microsoft shares as they vested and reinvesting proceeds into the S&P 500 versus holding all Microsoft shares. The difference, according to the analysis, would leave the seller about $50,000 ahead. The article frames this as diversification paying off even in the AI boom, where major winners like Nvidia, OpenAI, and Anthropic have seen extraordinary gains. The takeaway is that spreading investments beyond one employer can reduce concentration risk and sometimes improve outcomes.