Being paid in Stock, bad idea?

[WorkerBoy]

I'm working for a startup internet company in NY and have a question. We are a small public company but are short on liquid funds. Management is asking employees to be paid in stock as opposed to cash. The stock will then be immediately sold and the money will be deposited to our accounts the following week. They say that any money lost due to a fall in stock price will be made up for in the following week and any money gained is ours to keep (and pay capital gains on). For partaking in this plan, the company has promised a sizable bonus at the end of 6 months. Has anyone heard of anything like this before? Does this sound reasonable/legal/trustworthy? I'd appreciate any advice/ideas!

 

[BelizeBreeze]

Yes, it has been done many times. And 97% of the time the stock is worthless after a few months.

If you plan on doing this, either take your agreement to an attorney for a complete review or have a Plan B.

 

[HomeGuru]

Work for cash or enough cash to live comfortably, then take stock for the balance.