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"If you can get a $100/year raise just for the asking, and you can also get a $100/year raise in exchange for equity, then simple arithmetic indicates that the

by rfrey 11y ago

"If you can get a $100/year raise just for the asking, and you can also get a $100/year raise in exchange for equity, then simple arithmetic indicates that the equity has zero value" If I offer my Embarcadero penthouse in exchange for a $100/year raise, does that mean the apartment has 0 value?

geofft 11y ago
If you can't ask for more of a raise, then yes. The article clearly wanted you to ask for a raise at at least the granularity of real negotiations. Try getting a $10K raise in exchange for giving up equity.
- harryh 11y ago
  > Try getting a $10K raise in exchange for giving up equity. This will be possible (for people operating in the eng compensation band) at almost any startup you might want to work for. If you ask for this, and they don't at least discuss it with you, it's a pretty strong sign that you don't want to work there.
  - lordsper 11y ago
    I take it you mean they don't want you to work there?
    - harryh 11y ago
      No. What I meant was if a company isn't willing to discuss giving you a higher salary but lower equity it probably means that they don't really value their own equity. And not valuing their own equity is a proxy for not valuing the future of the company. You don't generally want to work somewhere the company leadership doesn't value the future of the company.
      - triplesec 11y ago
        It could instead mean that they are being careful with burn rate, and capital is hard to get, and their calculations include employees being part-paid with equity - for everyone's benefit - because companies die by the current account!
        harryh 11y ago
        Ya, that's true. It's hard to make a rule that is 100% applicable as there are always exceptions. I guess what I would really say is that they should be willing to discuss the situation with you and explain the status of the company and how that informs your compensation. The more in depth a company will go with you the better.

by rfrey 11y ago

geofft 11y ago

If you can't ask for more of a raise, then yes. The article clearly wanted you to ask for a raise at at least the granularity of real negotiations. Try getting a $10K raise in exchange for giving up equity.

harryh 11y ago
> Try getting a $10K raise in exchange for giving up equity. This will be possible (for people operating in the eng compensation band) at almost any startup you might want to work for. If you ask for this, and they don't at least discuss it with you, it's a pretty strong sign that you don't want to work there.
- lordsper 11y ago
  I take it you mean they don't want you to work there?
  - harryh 11y ago
    No. What I meant was if a company isn't willing to discuss giving you a higher salary but lower equity it probably means that they don't really value their own equity. And not valuing their own equity is a proxy for not valuing the future of the company. You don't generally want to work somewhere the company leadership doesn't value the future of the company.
    - triplesec 11y ago
      It could instead mean that they are being careful with burn rate, and capital is hard to get, and their calculations include employees being part-paid with equity - for everyone's benefit - because companies die by the current account!
      - harryh 11y ago
        Ya, that's true. It's hard to make a rule that is 100% applicable as there are always exceptions. I guess what I would really say is that they should be willing to discuss the situation with you and explain the status of the company and how that informs your compensation. The more in depth a company will go with you the better.