4 ms·

I thought it was standard at startups to offer company stock in exchange for small salaries for the first set of employees. If so, those employees with stock h

• Jemaclus 13y ago
  True, but it's generally something like 0.25% equity (almost always <1%). So you're working roughly the same hours for a tiny, tiny, tiny fraction of the overall equity.
  • SheepSlapper 13y ago
    Not just that, the tiny piece of equity you do have is hypothetical "future money". I've been in multiple startups where you're trading salary for equity, and none of those stock options are worth the paper they're printed on now. You may get lucky and your stake actually becomes worth something, but those cases are the very, very small minority. I'd take the extra $10k a year over stock 95% of the time, thanks. Or how about a matching 401(k)? Those are the kinds of compensation that show consistent returns right away, and aren't a roll of the (rigged) dice like employee equity.
  • danielweber 13y ago
    And if they ever need to raise money and you are not, at that moment, vital to the company, your 0.25% becomes 0.05%. Assuming success at a $50 million valuation, you did all that sweat equity for 25K, while probably giving up a lot more in salary.
  • webhat 13y ago
    That's assuming you actually last in the company to collect on your investment, as may happen with vested equity.