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"At big companies, you can expect to get ~$400k-$500k of stock" Where did you get that figure from? That's a bit surprising to me, there's no way you could get
by mpeg 12y ago
"At big companies, you can expect to get ~$400k-$500k of stock"
Where did you get that figure from? That's a bit surprising to me, there's no way you could get that kind of stock grant as an engineer in any of the big companies I've worked at.
- michaelglarson 12y agoMostly by talking to friends that work at these places.
- loumf 12y agoYou are way off. I would estimate $100-200k for 4 years for someone with around 4 years experience when they join. This is based on some quick googling, glassdoor, quora and knowing that 600k+ stock for 4 years at established company for relatively junior positions doesn't make economic sense. Acquihires and very rare skill holders or more senior roles? Higher -- if your friends of either of these, then maybe.
- laxatives 12y agoAre your friends very experienced? I went to Cal and afterwards went to one of the major tech companies. None of my recently graduated peers anywhere (including Facebook, Dropbox, etc) got anything close to $500k in stock. If you got lucky and timed valuation before a stock boom, you might get $250-300k. In general, the offers were around $60-150k in stock over 4 years. With more normal growth, it could reach $200k. For many people, especially in later years or if you had bad timing, it could be signifanctly less than that. All that being said, money is terrible motivation for working at startup, unless you are the founder and CEO. I left said company after 6 months because the team was dissolving and terribly mismanaged. I had several offers, but the one I went with gave the lowest salary. The draw was that everyone I interviewed with extremely sharp and friendly and that the CEO would allow me to work remotely while I sailed around the world after a year and a half.
- michaelglarson 12y agoYes, experience is in the 4-5 year range. I don't know what their previous stock compensation (at earlier companies was before they made the switch). I assume that that may have had a role to play in these numbers since it would be virtually impossible to hire someone by giving them less stock than what they already have. That said, there's a sufficient sample of such folks that I am very willing to believe that such numbers are entirely reasonable, and not hard to get.
- basseq 12y agoAgreed, this seems insanely high. Factor of ten at least. I don't work at those three companies mentioned: maybe I just don't know the sector (and maybe I should move to CA). I'm And at the very least, there's stipulations tied to vesting and grants that aren't considered here. Or a portion of bonus is in the form of equity, which isn't accounted for, either. Risk-adjusted returns for startup equity aren't even close to accurate ("let's assume that you're one of the lucky few" isn't a good estimation strategy).
- phamilton 12y agoDefinitely not factor of 10, though the timeframe isn't specified. With a 4 year vesting schedule, $200k in stock is fairly normal and $400k is not unusual for a senior hire.
- legohead 12y agoWasn't too long ago Facebook was in the news for giving new hires $1m in stock as signon bonus.
- basseq 12y agoI'd be interested to read more. Source?
- mpeg 12y agoI just don't believe this is post-IPO, or for non-managers.
- laxatives 12y agoI heard hundreds of long time employees were newly minted millionaires at IPO, but from what I heard from my peers, new grads don't get anything close to $1m. In fact, everyone I knew with an offer at Facebook 2012/2013 declined it to work elsewhere.
- nathantotten 12y agoMaybe not in 1 year unless you are very senior, but over 5-10 years that is attainable at a company like Google, Microsoft, Facebook, etc.