4 ms·
By being transparent and giving all the numbers needed for the employee to make a good decision. For what it's worth, I've always valued options at private com
by paulgb 7y ago
By being transparent and giving all the numbers needed for the employee to make a good decision.
For what it's worth, I've always valued options at private companies as zero in making career decisions and looking back I don't think that heuristic ever steered me wrong (even at a company that is now a "unicorn")
- foobiekr 7y agofrom experience: I am very big on transparency and honesty and while that feels good and no one ends up surprised, the problem you run into is that other companies are not particularly honest or transparent. I would not change what we did (which was basically full disclosure) but it was challenging to deal with.
- microtherion 7y agoWould a sensible compromise be to disclose anything that you would have to disclose if you were a public company instead of a private one?
- ElKrist 7y agoThe legal complexity of all the equity structures possible seems way too daunting anyway. Passionate young programmers who want to work for a startup don't have the background to understand it, even if the raw information is given when signing up. Plus, you have no idea what the next round of funding will do to the equity structure... Isn't it time for regulation to limit this complexity?