4 ms·
Does 1.25% seem ridiculously low to anyone else? It seems to me like she should have negotiated to be a co-founder instead of employee #1.
by sync 14y ago
Does 1.25% seem ridiculously low to anyone else? It seems to me like she should have negotiated to be a co-founder instead of employee #1.
- peacemaker 14y agoI agree... no-one wants to be the first employee, instead push for last co-founder. It is an interesting insight to what some startups get away with though - a way below average salary and a tiny speck of equity. She must truly believe the company will sell for hundreds of millions of dollars (unlikely) in order to see a decent return.
- riazrizvi 14y agoIt feels like her role is an auxiliary function, like Office Manager or QA, so I think her generic analysis works. If her role was central to the business, then I don't think she would be valuing her contribution with a one-liner like 'Employee’s value-add to the company (I used 15%, which I think is pretty low!)'. Instead the question of her value-add would be the starting/central point of the negotiation.
- tptacek 14y agoHuh? Nobody offers .5% equity to an "office manager" or "QA". She says in the post her role is "Director". Michelle is an enterprise software consultant with an engineering background.
- taybin 14y agoHer twitter account says she's an engineer. What makes you think her role is Office Manager or QA?
- wetzler 14y agoIt'd be pretty strange for a startup's first hire to be an office manager ;-)
- tptacek 14y agoIf you're receiving a W-2 salary that's in the ballpark for your field, absent some other contribution (marketability of your name, unique and non-substitutable skills or rolodex) you're not a cofounder.
- wetzler 14y agoIt just occurred to me that I should have posted this on HN before finishing the negotiation. Would have been great to get this input then.
- textminer 14y agoShit, that's what I got as a first employee at a company that has <$1m in VC/angel investment. Market-rate engineering salary, too.
- wetzler 14y agoKeen also has <$1M in investment. My salary isn't quite market-rate for an engineer, but it's not too far off when you include perks (proximate living bonus, lunches, healthcare, etc). If we do raise series A (or become profitable quickly), we plan to adjust salaries toward market rate.