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You might care to familiarize yourself with the terms "bonus", "equity", "expected value", and economics of the "firm".
by Drbble 15y ago
You might care to familiarize yourself with the terms "bonus", "equity", "expected value", and economics of the "firm".
- codeonfire 15y agoWhatever is offered is simply designed to keep people from leaving, nothing more. Any of those in no way competes with being a major owner of a valuable firm. Most firms do things such as grant options that are way out of the money, essentially worthless pieces of paper, and that take half a decade to vest. Even if a firm grants equity, which is rare, it is based on pumped valuations not based on free cash flow and which also takes half a decade to vest. Even then, it is likely to be less than 0.1% of the company. Bonuses, as well, are small in comparison to the value created by employee's work or even the employee's salary.