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> Most of the founders I deal with pay their employees before the founders themselves get a dime of salary. Sure the founders get the bulk of the equity. But th
by mrbrowning 9y ago
> Most of the founders I deal with pay their employees before the founders themselves get a dime of salary. Sure the founders get the bulk of the equity. But they also give their employees equity awards, even though the employees get paid a salary, as well (i.e. they don't take on the same risk).
Employees don't take on the same risk because they typically can't bear the same risk. This is the equivalent of lauding the bravery of a stunt double for jumping off a roof when they've got a big blue safety cushion waiting for them just outside the frame.
- siegel 9y agoWell, yes, that is often true. Many founders do have a family safety net that allows them to take on risks. I don't disagree with that. And I don't think we have the right set of gov't policies in place to incentivize and allow a broader set of potential founders to take such entrepreneurial risks. But, to be quite honest, I also don't think this sets Silicon Valley apart from corporate America. In the broader world of corporate America, people from higher socioeconomic status have a greater chance of getting ahead because of a whole set of advantages granted to them - better education, connections, etc...And, as a result of getting ahead, obviously they are better compensated than their peers born into lower socioeconomic classes.