2 ms·
1% (assuming no dilution) of $100M exit is $1M. Assuming you should be making around $200K for a senior position in NYC, subtract $90K and you're out $110K a ye
by rcarrigan87 12y ago
1% (assuming no dilution) of $100M exit is $1M. Assuming you should be making around $200K for a senior position in NYC, subtract $90K and you're out $110K a year for your equity.
Multiply 5 years till the exit and that's $550K you've forgone for your $1M exit. If you adjust for risk (i.e. the company doesn't sell for $100M or completely collapses) this is a terrible investment.
If you were to take the $550K you would have made had your salary been in line and invested it in fairly safe vehicles you could come out just the same with much less risk.