3 ms·
Liquidation preferences (in particular) are a big deal. It's entirely possible (if not common) for you to purchase stock that is literally worthless. In small a
by enjo 15y ago
Liquidation preferences (in particular) are a big deal. It's entirely possible (if not common) for you to purchase stock that is literally worthless. In small and even mid-size exits certain employees simply won't get paid.
- Retric 15y agoThat' probably the best advice possible. If your employee number 3 and they want to to take a payout etc get 'liquidation preference 'on any lost income * risk + interest or work for someone else. If your employee #10 and they still want a significant pay-cut work for someone else. PS: The law is on your side, as an employee lost pay is paid out before any other creditor but you need to list actual salary in $ and not just shares. You also can have issues with taxes so be careful.