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> Your equity package is a lottery ticket with expected value of zero. While this is true, it's vastly more true for startups and privately owned companies vs
by jorblumesea 7y ago
> Your equity package is a lottery ticket with expected value of zero.
While this is true, it's vastly more true for startups and privately owned companies vs publicly owned. Amazon's stock price might fluctuate but the chances of it being worthless are slim.
- foreigner 7y agoBut equity packages are typically stock options, not stock. So they're only worth anything if the stock price goes way up.
- jorblumesea 7y agoFor publicly traded companies, many equity packages now include RSUs, or give you the option to choose between options and RSUs. Which are worth something so long as the stock has any value. Perhaps I am twisting the value of what equity package means.
- opportune 7y agoNot for any big US tech company I've heard of! I think that is only for startups. FAANG (well, Netflix doesn't do equity comp normally), Microsoft, etc. it's all direct equity that vests over time.