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If someone works for a start up at lower rates, and very little equity, then they also carry a lot of risk. The pay-difference amounts to an investment, whose p
by bayesianhorse 12y ago
If someone works for a start up at lower rates, and very little equity, then they also carry a lot of risk. The pay-difference amounts to an investment, whose profit entirely depends on the value of the equity, which is close to 0 in most cases.
- AndrewKemendo 12y agoAgreed, which is why I stated as such. Determining equity/pay balance for employees is very difficult in the very early stages. This is why we lean towards the high side for pay vs equity because it is immediately tangible. I think it is largely dependent on the hire what this ratio should be and shouldn't be a formula - despite what "the industry" says. At the end of the day it's whatever the individuals think is fair.
- sjg007 12y agoThe biggest risk is not getting retirement started at all or matching 401k.