4 ms·

I recently got an equity offer that is a personal promise from the founder to do X in the future if Y happens. Sounds good to me. Because frankly, equity compen

I recently got an equity offer that is a personal promise from the founder to do X in the future if Y happens. Sounds good to me. Because frankly, equity compensation is a total lottery anyway, so why not have it also depend on the trustworthiness of the founder too. Shrug.

yieldcrv 4y ago
Why compound the odds against you? Is that a serious thought process? Just get your contingent offer in writing, because that freezes a time period of trustworthiness that remains applicable even if they change their mind or their opinion about you.
- b112 4y ago
  The founder could be forced out; would a new board take an outsted founder's word on a verbal for comp? What if the founder gets hit by a bus? Sad indeed, but who will verify the cash owed? What if the company is insolvent? A buy out may result in partial repay... but new owners are not going to pay on mere word. Things are on paper for reasons. More than listed above.
  - jeffrallen 4y ago
    You're right, but a payout from equity compensation is contingent, already, on those things and a thousand others not happening. It's a lottery and not worth my time trying to guess the odds. Better to use that time enjoying a fair salary to work with interesting people, and then we'll see. Maybe the promise is kept, maybe not. I think analysing equity compensation carefully is a good idea. But one outcome of that analysis can be, "Yolo, let's just give this a shot, take things a day at a time and enjoy the ride." Not everything in life can or should be put into contracts. (Despite my recent ode to them.)
    - yieldcrv 4y ago
    - yieldcrv 4y ago
      You should get your equity award in writing with the rest of the employment and compensation agreement. The rationale you put only favors the company.
victor9000 4y ago
In situations like this, I would use the ambiguity in the equity component to negotiate up the base salary, or some other benefit. Otherwise you're taking on increased risk relative to other opportunities at no cost to the company.

yieldcrv 4y ago

Why compound the odds against you? Is that a serious thought process? Just get your contingent offer in writing, because that freezes a time period of trustworthiness that remains applicable even if they change their mind or their opinion about you.

b112 4y ago
The founder could be forced out; would a new board take an outsted founder's word on a verbal for comp? What if the founder gets hit by a bus? Sad indeed, but who will verify the cash owed? What if the company is insolvent? A buy out may result in partial repay... but new owners are not going to pay on mere word. Things are on paper for reasons. More than listed above.
- jeffrallen 4y ago
  You're right, but a payout from equity compensation is contingent, already, on those things and a thousand others not happening. It's a lottery and not worth my time trying to guess the odds. Better to use that time enjoying a fair salary to work with interesting people, and then we'll see. Maybe the promise is kept, maybe not. I think analysing equity compensation carefully is a good idea. But one outcome of that analysis can be, "Yolo, let's just give this a shot, take things a day at a time and enjoy the ride." Not everything in life can or should be put into contracts. (Despite my recent ode to them.)
  - yieldcrv 4y ago
  - yieldcrv 4y ago
    You should get your equity award in writing with the rest of the employment and compensation agreement. The rationale you put only favors the company.

victor9000 4y ago

In situations like this, I would use the ambiguity in the equity component to negotiate up the base salary, or some other benefit. Otherwise you're taking on increased risk relative to other opportunities at no cost to the company.