Tanium Employees Denied Some Equity Grants for Not Complying With RTO

The $9 billion cybersecurity company Tanium is cracking down on its return-to-office policy this year in an unconventional way: it is withholding a form of compensation from those who don’t comply.

As of this summer, Tanium employees who violate the RTO policy risk not getting an “equity refresh,” according to three people familiar with the matter. Tanium employees typically receive shares as part of their compensation package when they first join the company, and they may be eligible for an “equity refresh” or additional equity after a specified period of time at the company.

While Tanium CEO Dan Streetman has said at companywide meetings that going to the office was important, leadership hasn’t verbally or in written communication announced to the company that RTO may be tied to equity grants, sources said.

Stock options and other forms of equity-based compensation are a crucial part of the startup ecosystem. They entice early startup employees with the promise of owning a stake in what could be the next big thing. Those shares can lead to a big payday down the line if the company goes public or gets acquired. Not receiving additional equity grants can significantly reduce a startup employee’s compensation package.

Tanium did not respond to requests for comment from Business Insider.

Many companies across the US, including AT&T, Microsoft, and Amazon, have been attempting to reduce remote work. Some companies have terminated employees who don’t comply with their policies. Withholding a form of compensation for those who don’t return to the office is relatively rare, experts say.

“Most companies will say, ‘Look, you need to come in,'” said Nicholas Bloom, a Stanford economics professor who conducts research on remote work. “They’re sanctioned, and then later they’re terminated.”

Bloom said he had not heard of companies denying employees additional equity for balking at RTO mandates. He said that some law firms have cut pay for those who don’t come into the office.

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Tanium was founded in 2007 by father and son David and Orion Hindawi. It offers a range of cybersecurity products for securing and managing devices on an organization’s network, serving customers from large businesses to government agencies. It has nearly 2,000 employees worldwide.

Tanium first announced its RTO policy in late 2023, stating that employees within a 50-mile radius of an office are required to work there on Tuesdays and Wednesdays, with a third day to be determined by their team leaders. Initially, this policy was loosely enforced, said people familiar with the matter.

The company’s latest policy reduced the radius to 35 miles, a current and a former employee said. To determine how often employees are going to the office, Tanium is reviewing badge scans, according to the sources.

This is not the first time Tanium has found its stock-option practices under the spotlight. In 2020, Business Insider reported that Tanium used a “clawback clause” to buy back employees’ equity in the company, whether they wanted to sell or not. Bloomberg had also previously reported that Tanium fired employees right before their stock vested.

Prior to Tanium announcing its RTO policy, the company was known for its remote-friendly culture. In recent years, the culture has shifted to an in-office-first approach. New hires are expected to be within commuting distance of the office, three current and former employees said.

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