3 ms·
you assume no one is putting part of their base salary and cash bonus in the stock like any other person would. of course they are. just because the equity port
by tempsy 6y ago
you assume no one is putting part of their base salary and cash bonus in the stock like any other person would. of course they are. just because the equity portion of your comp is illiquid vs someone else doesn’t mean you don’t have the means to save and invest.
- lumost 6y agoThe comparison is being drawn between employees who joined say google, amazon, or netflix - and those who joined startups. The employees at the public company benefit in negotiations with the employer by having price transparency on the value of their equity as well as liquidity. You could work for Facebook, but think Apple is a better bet and sell your equity every month to buy apple shares. Most startup employees overvalue their equity and accept lower total compensation compared to their public company counterparts and receive illiquid or potentially even negative value financial instruments in return.