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The problem here is that "the possibility of real wealth" is not "real wealth". Not being dead provides "the possibility of real wealth" to approximately the sa

The problem here is that "the possibility of real wealth" is not "real wealth". Not being dead provides "the possibility of real wealth" to approximately the same degree as the equity offered to anyone past double digit employee count. Even before that it's only factor unity above the baseline of "not yet dead"

encoderer 11y ago
It's a subjective term. But IMO, a few hundred grand after-taxes is real wealth to somebody making $150k a year. It can bend the net-worth growth curve of your life -- a huge home downpayment, elimination of your student loans, etc. Be smart, take an educated risk, and IMO don't listen to people who say equity is worthless.
- Avshalom 11y ago
  A few hundred grand net absolutely is real wealth. To anybody really. But how many people are seeing a few hundred grand after-taxes (after taxes!)?
  - encoderer 11y ago
    Over a 4 year grant? This is just a guess, I don't have the IRS database at my hands. Maybe $200-300k after-tax sounds more reasonable? Like I said above -- "with some luck"
    - Avshalom 11y ago
      You have not yet actually made a guess you've just kept asserting that "a lot of money" is "a lot of money" and I agree. A lot of money is a lot money. I just think that modulo nobody is actually seeing a lot of money from start-up employee equity.
      - encoderer 11y ago
        The problem is that it's not an easy thing to estimate. I know I've had equity grants that I thought were worth $x but turned out to be worth $x * 4. But you don't sell all of it at once, and you don't pay all of the tax bill when you sell, so it's a very hard thing to know. $200-300k after taxes is, I'm sure, not a rare outcome over a 4-year vest.
  - ryandrake 11y ago
    I'd love to see real data on what percentage of tech workers who receive equity ACTUALLY end up cashing out for over, say, $100K. Not a HN Survey, because of course everyone here has $10MM in equity, a mansion on the Peninsula, and a supermodel spouse. But a real survey across the huge tech company landscape, in and out of Silicon Valley.

encoderer 11y ago

It's a subjective term. But IMO, a few hundred grand after-taxes is real wealth to somebody making $150k a year. It can bend the net-worth growth curve of your life -- a huge home downpayment, elimination of your student loans, etc. Be smart, take an educated risk, and IMO don't listen to people who say equity is worthless.

Avshalom 11y ago
A few hundred grand net absolutely is real wealth. To anybody really. But how many people are seeing a few hundred grand after-taxes (after taxes!)?
- encoderer 11y ago
  Over a 4 year grant? This is just a guess, I don't have the IRS database at my hands. Maybe $200-300k after-tax sounds more reasonable? Like I said above -- "with some luck"
  - Avshalom 11y ago
    You have not yet actually made a guess you've just kept asserting that "a lot of money" is "a lot of money" and I agree. A lot of money is a lot money. I just think that modulo nobody is actually seeing a lot of money from start-up employee equity.
    - encoderer 11y ago
      The problem is that it's not an easy thing to estimate. I know I've had equity grants that I thought were worth $x but turned out to be worth $x * 4. But you don't sell all of it at once, and you don't pay all of the tax bill when you sell, so it's a very hard thing to know. $200-300k after taxes is, I'm sure, not a rare outcome over a 4-year vest.
- ryandrake 11y ago
  I'd love to see real data on what percentage of tech workers who receive equity ACTUALLY end up cashing out for over, say, $100K. Not a HN Survey, because of course everyone here has $10MM in equity, a mansion on the Peninsula, and a supermodel spouse. But a real survey across the huge tech company landscape, in and out of Silicon Valley.