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Point 5: even if your startup exits successfully, the math of exits are brutal for employees (even early ones). Between double dipping for investors, accelerat
by whiplash451 2y ago
Point 5: even if your startup exits successfully, the math of exits are brutal for employees (even early ones).
Between double dipping for investors, accelerated vesting for the c-suite, and taxation intricacies, employees make out much less than they'll think even in good scenarios.
Everyone makes 10X less than their head in the food chain: investors -> c-level -> VPs -> directors -> senior staff.
- nejsjsjsbsb 2y agoThis is why later companies can be better. Either they are public or private but it is clearer what the stock is and could be worth. Best deal is to get actual stock not stock options.
- YetAnotherNick 2y agoI don't know anyone who took any significant pay cut for the expectation of future return. If you join startup for huge return as an employee in any case you are doing it wrong.
- whiplash451 2y agoExpectations of a big return is absolutely a valid reason to join a startup. That’s the very definition of it actually.
- YetAnotherNick 2y agoNo, that's why you have such expectation mismatch. No one should take any significant pay cut over market rate. In that way they aren't losing anything monetary.