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$1M in stock sounds great... until you realize it's actually $600K after taxes. With a 4 year vest, that equity is worth $150K per year. About what a Top Engin
by matchagaucho 9y ago
$1M in stock sounds great... until you realize it's actually $600K after taxes.
With a 4 year vest, that equity is worth $150K per year. About what a Top Engineer sacrifices in salary to go work at a start-up.
- tptacek 9y agoNitpick: that salary is also subject to taxes.
- forgotmysn 9y agoas is the vested equity. not to mention the cost of exercising the shares
- tptacek 9y agoRight, he started by pointing out the tax haircut of equity. But he moved the goalposts when he compared the nominal dollar cost of foregone salary to the after-tax value of the options. It's a nitpick. The underlying point stands.
- abritinthebay 9y agoIs the startup getting them to work for free? If so the engineer is a sucker unless they’re a cofounder.