If It Sounds Too Good To Be True, It Probably Is

Ben Horowitz has a great post up on his blog, called Why I Did Not Go To Jail.

I would encourage everyone to go read it. But in the event you aren’t going to do that, he tells a story about an options strike price plan that his CFO recommended to him. It turns out the plan was against the law and his GC stopped him from implementing it.

I’ve heard a lot of ideas over the years that, like this options strike price plan, sound too good to be true. And in most cases, they were just that.

I have developed a deep skepticism around anything that sounds like a free lunch. As the saying goes, there is no such thing.