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> Employees deserve high-quality equity on par with investors Why? As an employee I'm taking on nearly 0 risk. Maybe if they are paying me poorly I can see the
by tick_tock_tick 5y ago
> Employees deserve high-quality equity on par with investors
Why? As an employee I'm taking on nearly 0 risk. Maybe if they are paying me poorly I can see the argument where I'm "investing" more time/work into the company that I am being paid for and that difference should be made up with equity but otherwise this seems divorced from reality.
- 908B64B197 5y ago> Why? As an employee I'm taking on nearly 0 risk. I'm not sure how you are pricing things. FAANG stock comp is guaranteed money; You can sell it as soon as it vest for exactly the amount you signed for. Startup equity, not so much (there's no guarantee that a liquidity event will ever happen for starter). Unless you are working in a lower tier market where stock comp isn't the norm.
- floren 5y agoThe company could not exist without the employees, and for most startups it could not exist without the investors. Why should one critical component be rewarded not just with more of the company, but with better versions of the same rewards? You can argue that employees are fungible, but so is investor money, and frankly I'd rather take random money than random programmers.
- drenvuk 5y agoIf you're a good employee you're better off working at a FAANG. the risk your taking is working for relatively crappy pay for the chance at a large pay off at the end when the company you believe it finally IPOs. At a FAANG I don't have to care, I'm making $300k-$500k or more if I'm actually worth anything. It's an investment by the employee. Coinbase is being cheap and it will come back to bite them. Odds are they don't care for the lifetime of the company since they're so tied to bitcoin's success.