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That's kind of the point though. Options are (at least intended to be) compensation for a lower than market salary and a risk that the company might go bust.
by mason55 11y ago
That's kind of the point though. Options are (at least intended to be) compensation for a lower than market salary and a risk that the company might go bust. At the point that you're raising a Series E round you are going to be paying market salaries and have enough cash that the chance of going out of business is very low. At this point you'd expect options to behave more like RSUs in a public company where the reward is for creating value as opposed to being a payoff for taking risk or investing your time.
- JonFish85 11y agoThat's a fair point, assuming you hold strong on getting your market salary. Obviously the company is going to hold strong on their "OMG we're giving you gold" stance, but if nothing else there's at least a lot more wiggle-room on salary.
- not_that_noob 11y agoI agree that the risk is lower, but the RSU analogy is imperfect because the value of the underlying stock is the same for all holders. In this case, one class of holders - the senior investors - will get more of the value, and this value is taken away from other holders who thought they had more. If Larry's stock value went up when employees and GOOG went down, there would be pitchforks out in M View.