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Wow. Why even go work for a startup if you are going to do this? Might as well just work for a FAANG and collect immediately liquid equity.
by YuriNiyazov 5y ago
Wow. Why even go work for a startup if you are going to do this? Might as well just work for a FAANG and collect immediately liquid equity.
- codingdave 5y agoIt sounds like you are trying to be snarky, but yes - that is exactly the point. Startups are high-risk/high-reward for founders. They have equally high risk for employees, with lower rewards. For many people, that just isn't the right move, and maximizing their cash salary is a better choice. Startups are not the right answer for everyone.
- mtnGoat 5y agoYou usually have to vest over years to get full value out of that “immediate equity” you are referring to. And in that time a stock can tank. Still a risk. Albeit smaller.
- joshribakoff 5y agoMost companies issue RSU “refreshers” if the stock does crash, to keep their compensation competitive, as a mass exodus is likely to cause a negative feedback loop with the stock price. If the stock goes up, they don’t take away RSUs.
- mtnGoat 5y agoInteresting, I didn’t know that. Thank you.