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Who would consider building a successful and stable business a failure? Surely not the people that helped build it. Isn't early employee equity compensation mo
by benjaminjosephw 6y ago
Who would consider building a successful and stable business a failure? Surely not the people that helped build it.
Isn't early employee equity compensation more a case of "if the founders make a lot of money from this, I deserve a fraction of that too" rather than being an IOU in place of compensation?
- throwaway2048 6y agoThe people who invested money in it expecting explosive growth at high valuations.
- deleted 6y ago[deleted]
- ticmasta 6y agonot if you traded early comp for the promise of astronomical equity returns. Especially if you were sold hard on this by the founders; in this scenario they have failed because the goal was not to build a stable, self-sustaining business.
- closeparen 6y agoEquity compensation is asking employees to invest their labor in the company. If you’re honest about your intention not to generate any return on their investment and they do it anyway, I guess that’s fine, but it seems more likely that people taking those offers are being misled. Sustainable businesses can buy the labor they need with present cash flows and don’t need to sell people on the possibility of future ones.
- gus_massa 6y agoAnd that's why every time someone ask how much salary reduction they must accept because they got a .1% equity, the best answer is $0. (And get the offer in written, just in case.)