4 ms·
1% of Nothing is Nothing. Why offer equity in compensation packages?
- Apocryphon 10y agoMaybe, much like employers offering medical benefits as a way to compete on compensation with each other, it's a differentiator that used to make sense at one point but has since spiraled out of control.
- hardcandy 10y agoModern day Silicon Valley is built on somewhat of a gold rush mentality. Why do you think people move out here and put up with much of the locally curated insanity? Because they think they have a chance to strike it rich. Maybe even really, really rich. And they're right; they probably have a better chance here than anywhere else in the world. Startup equity is what keeps people plugged into this particular Matrix. I love Silicon Valley but I recognize it for what it is.
- jomamaxx 10y agoActually, you can calculate the value of an equity packages, since the 1980's we've been able to intelligently price options (see: Black-Scholes) - but it's a matter of being able to wrap a good probability distribution around future outcomes. I suggest that the current packages are roughly reasonable. If anything, what staffers need to do is understand them a little better.