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>If you're talking about TC that has to be said; most people when they are talking about "making X amount" are talking about salary. Not in tech.
by xenihn 5y ago
>If you're talking about TC that has to be said; most people when they are talking about "making X amount" are talking about salary.
Not in tech.
- ironmagma 5y agoSo what’s the recommended way of talking about how much you make when you are at a startup which only has stock options, where the stocks may eventually be worth hundreds of thousands but are currently worth 0?
- comp_throw7 5y agoIf it's an early-stage startup, "base salary (+ bonus if applicable) + paper money". If it's a late-stage startup where you're getting RSUs and the company is likely to go public soon, people usually give a TC number that assumes equity pricing at FMV with the understanding that much of it is illiquid (I'd personally put a 30-40% discount on that kind of equity offered by late-stage startups to compensate for the illiquidity, uncertainty, and risk, but different people will have different numbers, and obviously the specific details of each situation are also important).
- xenihn 5y agogo ahead and count them if you work at robinhood or stripe you could also just lie if it's that important to you
- ironmagma 5y agoWell the question was more around what to count them as since there’s a wide range. In my experience people typically just mention salary and count stock options as 0 but everyone in this thread seems to disagree.
- joshuamorton 5y agoThe answer is that it differs between public and private companies. It's exceedingly difficult to value the equity in a startup that may not IPO for years. Its exceedingly easy to value RSUs that vest each month and then are immediately sold for cash.