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You're not going to net anywhere close to 800K. As the article notes, they're talking 300K base + 500K equity (which is illiquid) at the 'highest end.' (In real

You're not going to net anywhere close to 800K. As the article notes, they're talking 300K base + 500K equity (which is illiquid) at the 'highest end.' (In reality the highest end is likely quite a bit higher, but with a wide and thinly distributed band). - ... the 300K base is 177K after tax. - ... the 500K equity is ~250K after tax. Financial independence assuming the stock doesn't massively appreciate by the time you see liquidity is 5-10 years away. I mean this is good do not misunderstand me. There's a big difference between making 800K gross where 62.5% is illiquid and 800K net you can spend any time. [edit] This isn't much different than getting a staff+ role at a MAANG, which includes liquidity, but of course upside depends in your view of the relative stock performance in the coming years. Also, this is well above median, we're probably talking top 5-10% of talent.

j0hnyl 3y ago
You don't think there's a market for this so called illiquid openai stock?
- arcticbull 3y ago
  Potentially, of course, depending on a ton of factors. Stock agreements generally forbid transfers to third parties outside of like, death and divorce. Also, they're probably RSUs at this point which these secondary market companies don't like because unlike options, they can't be exercised at the holder's discretion, or shares, which the employee owns outright, they don't vest until all conditions are met (which often means until liquidity event). If the conditions aren't met within 7 years the RSUs evaporate even if the company continues to do well. So yeah you may be able to get a no-recourse loan or a forward sale, on bad terms, for the stock/cash to exercise the options. For RSUs you're either going to get even worse terms or politely told to come back once they vest. Let me know if that's not the case though.

j0hnyl 3y ago

You don't think there's a market for this so called illiquid openai stock?

arcticbull 3y ago
Potentially, of course, depending on a ton of factors. Stock agreements generally forbid transfers to third parties outside of like, death and divorce. Also, they're probably RSUs at this point which these secondary market companies don't like because unlike options, they can't be exercised at the holder's discretion, or shares, which the employee owns outright, they don't vest until all conditions are met (which often means until liquidity event). If the conditions aren't met within 7 years the RSUs evaporate even if the company continues to do well. So yeah you may be able to get a no-recourse loan or a forward sale, on bad terms, for the stock/cash to exercise the options. For RSUs you're either going to get even worse terms or politely told to come back once they vest. Let me know if that's not the case though.