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>Stock options are basically worth $0 statistically. Just saying I personally know developers at companies very similar to the ones you're listing that get sto
by tyingq 3y ago
>Stock options are basically worth $0 statistically.
Just saying I personally know developers at companies very similar to the ones you're listing that get stock options. While nobody is getting rich, they do exercise them when they vest, for non-trivial amounts. Bonuses are common as well.
- scarface_74 3y agoAre we talking about the same thing? Stock options - private companies that give you options that aren’t liquid (usually) until an exit event at sone undefined time. RSUs - a known amount of stock granted in a public company with a known vesting date. I know people at those companies and they aren’t getting paid nearly as much at the senior level as even a mid level software engineer at one of the larger tech companies. I have been on both sides and spent most of my time as an enterprise dev.
- tyingq 3y agoI'm talking about RSUs, yes...apologies. I'm not saying they are getting FAANG level money. I'm saying that they often only report their base salary to sites like glassdoor/salary.com, and don't always note the RSUs and bonuses. Together, that's often 10-20% over what you see on those sites. Doesn't close the gap, of course.
- scarface_74 3y agoYes. But the gap isn’t nearly as wide as people think it is once you consider the lifestyle you can live in metro Atlanta (where those companies are headquartered) compared to making more on the west coast. Yes I realize I’m arguing both sides. I didn’t even think about accepting the chance to apply for a role at $BigTech when a recruiter reached out to me that would have been $75K-$100K more than I was making if it meant that I had to move to Seattle. I did take a permanently remote role that paid $60K-$75K more by doing a slight pivot from pure software development.
- woobar 3y agoStock options are not limited to private companies. Public companies do stock options too. The only difference from RSUs is if stock goes below your strike price they are worthless at vesting. You still can wait it out. Everyone at my dinosaur financial company was getting them 15 years ago. Not a life changing amounts at my level though.
- scarface_74 3y agoThat’s quite a bit different don’t you think? And stocks don’t always “go back up”. I would have hated for my RSUs to be worthless as my stock dropped 40% from its highs before they vested. At least I was able to sell them and diversify.
- hgsgm 3y agoOptions have higher volatility. This is not a mystery and doesn't mean EV is 0.
- singron 3y agoYou can lose money in options, which means the EV can be negative. E.g. you leave the company and are forced to exercise or abandon the options. If you exercise, the company can stay private until you die or liquidate at less than what you paid.
- woobar 3y agoQuite different from your previous point (i.e. that they are worthless)? Don't think so. They are a good addition to the salary plus bonus. Now these old companies switched to RSUs.
- scarface_74 3y agoWorthless meaning. If only 1 in 10 companies ever see a “successful” exit and if even then, my equity may end up being essentially nothing after the investors and founders get theirs and it’s illiquid, why should I value equity at anything more than $0 when comparing compensation?