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I think people forget just how complex cap tables can get. Add in rules about vesting and strike price, and dilution in future rounds and debt financing, and th
by colinbartlett 12y ago
I think people forget just how complex cap tables can get. Add in rules about vesting and strike price, and dilution in future rounds and debt financing, and the likelihood that lowly employees receive meaningful amounts at an acquisition diminish further. Sure, big time paydays and public offerings are possible, but these are the exception.
Bottom line: Insist to get paid what you're worth and take any options as a free lottery ticket that will probably never get you anything.
- zorpner 12y agoAnd equally importantly, get paid for the work you do (i.e. don't let anyone convince you to work nights & weekends for a year to "build the company" based on a hypothetical payout).
- geertj 12y agoCap tables are indeed very complex. Often there's also a preference on preferred stock, meaning that the preferred gets a minimum return (often 300% or 400%) before the common gets anything. Fully agreed with the other comments: ignore equity in early stage startups and go for a market rate salary. The one situation where I would take a lower salary is if there's concrete plans that a company will go public within 12 months, and you're going to be in a senior enough job that you'll be in the know about it.
- lightblade 12y agoI wonder what if I used the stock options money to purchase lottery tickets, would I have more chance of winning big? Since stock options vests over 5 years and lottery tickets draws every week, I tend to think you have better chance winning the lottery than winning on your options.