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I'm interested in this as well. I've been thinking about doing a startup with no stock options. Budgeting an average of about $125K in W2 salaries for developer
by ci5er 10y ago
I'm interested in this as well. I've been thinking about doing a startup with no stock options. Budgeting an average of about $125K in W2 salaries for developer types in the Austin/Dallas (or remote). (I realize that this would be light for the Bay Area or NYC).
It's a new company, so I cal it a "startup" (although we may elect not to do a raise for a year or so), but I don't think it's fair to ask the developers to fund the company through reduced salary in return for lottery tickets. Everyone ends up feeling a bit raw if they've been eating cat food for 3 years and it then doesn't work out...
- auntienomen 10y agoThis is a nice idea, but perhaps give stock grants as bonus incentive.
- ci5er 10y agoI was thinking of a profit distribution once we hit that point - say 24 months in. 20% of last year's EBITDA quarterly to employees this year or some such. Of course if I've taken on any outside money by that time, those investors are certain to have opinions about that... That way we don't have to worry about options needing to be exercised, or the cash-out-of-pocket tax hit of RSUs (until some legislation to fix that problem makes it through someday...) I'm happy to share success with the team that made the enterprise successful, but most of the stock based bonus instruments have some 'gotchas' that end up hurting the wrong people... Does that (the profit sharing) sound as if it might be a reasonable incentive structure? Or would you as an exemplary candidate want stock even though the company had no hard-and-fast plans for an exit. (Of course, these days, who does?)
- deleted 10y ago[deleted]