4 ms·
Seriously though, you don't get it both ways. There's been this backlash against startups paying below market on the promise of equity, so then many startups in
by frisco 11y ago
Seriously though, you don't get it both ways. There's been this backlash against startups paying below market on the promise of equity, so then many startups in reality do start paying at or above market, and then people are still unhappy when things like this happen. This is a side effect of the increased cost of labor which makes many startups less viable. Silicon Valley doesn't run on "screw you pay me". At or above market salaries are a huge cost to startups to the detriment of their equity, and so honestly I'm not too upset about employees who have been making market salaries not getting much out of an acqui-hire. Hopefully the ones who were in the trenches with the founders will be rewarded, and if it's the case here where that's much of the team, then hopefully there's an earn out structure that provides that if the acquirer is trying to manage the acquisition risk.
- habith 11y ago> many startups in reality do start paying at or above market I think that's the key phrase here. I don't know if they paid at or above market rate and that would be where I'd start looking before passing judgement. Your company's job postings suggest "competitive salary and meaningful equity", which is a much better signal than Heyzap's posting[0] i.e. no mention of compensation whatsoever (I personally prefer a salary range to know if the discussion is even worth our collective time). They're a small startup so the data is incomplete and meaningless, but assuming the one salary posted on Glassdoor ($65-75k for a marketing manager) is accurate, I think it's fair to say that their compensation package was quite low and heavy on equity. > I'm not too upset about employees who have been making market salaries not getting much out of an acqui-hire I completely agree with you. If you're getting market or above market salary then equity shouldn't be an issue whatsoever. [0] https://www.glassdoor.com/job-listing/software-engineer-heyzap-JV_IC1147401_KO0,17_KE18,24.htm?jl=1162901135 https://www.glassdoor.com/job-listing/software-engineer-heyz... [1] https://www.glassdoor.com/Salary/Heyzap-Salaries-E493011.htm https://www.glassdoor.com/Salary/Heyzap-Salaries-E493011.htm
- phamilton 11y agoIf any startups pay high market salaries, it's in ad-tech. There's little "I believe in the product" and frequently tech is boring. The only redeeming quality is they pay well. That said, this doesn't seem like a successful exit.
- blackguardx 11y agoI think the key word is "hopefully." I accepted a below market salary at Square and barely made enough off their stock to bump me up to market. It would have been much easier to just get a market-rate job to begin with.