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The other thing to keep in mind is how much comp is the right to in the future buy $100k present value of stock for $100k. Even if that option prices at 20% th
by TimPC 9y ago
The other thing to keep in mind is how much comp is the right to in the future buy $100k present value of stock for $100k. Even if that option prices at 20% the “100k” is only 20k of comp. For many positions 100k/year of stock may be too limiting. If there are ways to manipulate the share value of the class of shares you are getting to a small fraction then it might work. But if this excise price is the VC round price for a worse class of share the amount of comp here is fairly small.
- sulam 9y agoThe common vs preferred spread is usually enough to make this a non-issue unless you are a very well-paid executive. This is why I was careful to say the _average_ employee is likely to do better, strictly in terms of startup compensation.