I would love to understand how employee #1 got an "embarrassingly" low amount from a 9 figure sale, especially when you say that the exercise tax would have bee

I would love to understand how employee #1 got an "embarrassingly" low amount from a 9 figure sale, especially when you say that the exercise tax would have been high. What was the issue? I can think of: 1) Massive dilution or liquidation preferences? 2) Failure to negotiate significant equity at the beginning of the company? 3) Something else?