3 ms·
It's worth pointing out that this post is written from the point of view of a US startup. If you are in the UK, just say no to stock options and ask for a salar
by surfingdino 3y ago
It's worth pointing out that this post is written from the point of view of a US startup. If you are in the UK, just say no to stock options and ask for a salary that matches the market. UK startups keep on trying to get people to work for less with the promise of stock options despite there being little recent evidence of UK startups IPO-ing. I got screwed on startup stock options in the past, but not as badly as people who invested 5+ years of their lives into the company. The founder got enough to not have to work for the rest of his life, but the employees got zero pennies when the business was sold to competition. Stock options are not even a gamble, they are an IQ test, if you accept them you have failed.
- mgaunard 3y agoReceiving stocks in the UK means paying a lot of tax that you have to pay immediately (45% of the fair value) on an asset that is an illiquid investment. It is a bad idea and you're much better off getting stock options, so that you only pay tax when you exercise, and you would only exercise when you can sell, so you have money to pay the tax. Then the whole point of working for a startup is that you can have larger upside than in a more established firm, often 4x. Finally even in established firms it is common for high compensation to be paid out in shares/stock options (be it in the company itself or a fund) and/or deferred, which is not any different anyway, except the value is a bit more battle-tested.