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> What this does is, it collects money from today's FAANGs while disincentivizing future startups from starting here. How many startups are there where the exe
by danans 6y ago
> What this does is, it collects money from today's FAANGs while disincentivizing future startups from starting here.
How many startups are there where the executives make 100x to 200x the median employee pay? That only happens via stock-based compensation at public companies. If that's the case, they're not a startup.
- qppo 6y agoIs the tax assessed on options/grants even if there isn't a market to sell them?
- dgoldstein0 6y agoIt probably depends on how those options and grants vest. Earlier stage companies are more likely to set them up so that they vest at IPO.
- danans 6y agoIf there is no market, either because it is pre-IPO or unvested then the value is unrealized, and therefore not a form of compensation, so no. You don't own equity that haven't vested. They are just a contract between you and the employer to transfer them to you upon vest, which either party can probably walk back on if they choose to.