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I've been thinking about a model where a startup/early-stage company would give NO shares on hiring, but instead slightly more salary and a generous (15% discou
by deegles 11y ago
I've been thinking about a model where a startup/early-stage company would give NO shares on hiring, but instead slightly more salary and a generous (15% discount?) stock purchase program. That people feel less obligated to negotiate and employees get more flexible vesting (month-to-month).
I have no idea how that would work with pre-IPO companies, tax implications, etc but it feels more fair to me.
On a similar note, I wish there were better ways to prevent dilution among early-stage employees. They ostensibly generated the value that investors are buying, so why must they lose out on every funding round? Of course, employees could negotiate for more options on every round but not everyone will do so.
- laxatives 11y agoGetting a chunk of stock options with huge upside seems palatable vs guaranteed shares at a large tech company. Offering me a 15% discount seems insignificant. The moment you go public, everyone is going to buy all the shares available. How do you decide how many each person can buy? If I buy before an exit event, I am taking on even more risk than the option because now I am paying all of the taxes. This offers no benefits, but increased tax risk and I'm paying more to buy shares in the first place.