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Ask HN: Is this fair compensation as the first employee?
I was offered 1% or $20.00/hour for working as one of the first employees (We are the only programmers on the team). Is this as low as I'm thinking it is? Also, what is the expected amount most "first employees" are given?
- benologist 15y ago1% or $20/hour? Seems unreasonable, I wouldn't feel comfortable asking any of my guys to make that choice.
- ebafb2 15y agoSorry, let me clarify a bit. 1% if we stay on once the startup receives funding, and salary will be negotiated then. Otherwise, if we decide to leave once we receive funding, we will get $20.00/hour for the work we had put in prior to funding.
- benologist 15y agoSo you're working for free, and if they get funding at all (a process that can take months) you get to choose between 1% equity or $20/hour. That's even worse...
- kls 15y agoRight free = 50% (or equal share if there is more than one partner) if not you can work on your own idea for free and keep 100%. To me this deal stinks, it also smells really bad by the fact that salary will be negotiated once they are funded when you have far less leverage to bargain with. Right now you have everything that they need yet they want to stack the deck totally in their favor. My personally experience with individuals like this is they will only get worse if they do get funding. I would run for that deal fast, it is so low and so one sided that you will never get a fair deal and if you do they will look to deprive you of it at any opportunity. They think that you (your role) are worthless. The offer is evident of this, they have the if we could just get some laborers to build this we will be rich mentality. They view you as a cog that is worth $20 an hour, their mentality will not change once they are funded.
- mjs00 15y agoYou should have the discussion about post-funding pay now, so you know if you want to sign up. But given what was offered, this conversation will probably go badly or not happen, which is probably a good sign for you and your programmer friend to get a paying job at market rates elsewhere.
- doctorwho 15y agoThis might be a good deal if you're working in India.
- ebafb2 15y agoUnfortunately this is in California.
- steventruong 15y agoYou should be receiving salary from the start AND equity regardless of their funding status on a regular vesting schedule. Pre-funded equity should be a bit higher. Also if this is prelaunch, you should be getting a lot more. Practically cofounder status at that point except for the salary component. Sounds like a bad offer in my personal opinion.
- malandrew 15y agoThe people making you this offer are either greedy or clueless. I would be wary. Unless these are people with a solid track record in delivering great products and handling the business side of things, they need you more than you need them.
- qq66 15y agoI run a VC backed startup and we pay six-figure salary PLUS more than 1% equity to our first employees.
- devs1010 15y agorun away, seriously, the fact that you are even considering this means you need to turn away from startups for now and focus on getting a job with a solid company to get some experience