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I think it can depend on the size of the operation, and your mindset. If I'm employee #100 at a well-funded startup, I'd tend to agree with you and value equity
by beisner 10y ago
I think it can depend on the size of the operation, and your mindset. If I'm employee #100 at a well-funded startup, I'd tend to agree with you and value equity as a risk adjusting factor. But if I'm employee #5, I probably would take a pay cut in exchange for a significant chunk of equity - if I was even considering such a risky operation, I probably wouldn't be in a place in my life where job security was especially important to me.
- comstock 10y agoIf you think it would be an interesting experience, or like the people, or think it's a fun problem it makes sense to take a pay cut. If you're thinking increased equity will compensate for reduced salary in the vast majority of cases that doesn't make financial sense.