> startups pay options in lieu of market-rate salary this is true but this is largely due to an unworkable tax treatment of giving out illiquid shares to emplo

> startups pay options in lieu of market-rate salary this is true but this is largely due to an unworkable tax treatment of giving out illiquid shares to employees that rely on employment for money, and the longstanding tax regime would seek to tax employees that have higher value shares even if they can't get cash to pay for it. so this has left private companies in an uncompetitive situation with options as the poor workaround, analogous to chemotherapy where it hurts everyone in the absence of a better treatment, but you might come out ahead