Options should be thought by employees as a future bonus based on performance - a "thanks for sticking around when there was lots of hard work to do". Meaning y

Options should be thought by employees as a future bonus based on performance - a "thanks for sticking around when there was lots of hard work to do". Meaning your salary should be market rate and not lowered in exchange for options. It's been a while, and I can't find it right now, but somebody once put together an analysis of average employee payout for companies with exits that valued the price of the options above their strike price (meaning they were actually worth something). My memory is hazy, but they found that a tiny fraction of employees managed to make something under $20k per year worked out of their options. And many of them were working under market rates for their services meaning the financial outcome, the years of belt-tightened living, and missed opportunities came out to something like under $10k extra compensation per year worked. On the flip side, I know from personal experience, you can learn more in startups than in more traditional businesses, and so the experience you gain might be worth more to you over a career than any specific financial compensation. Basically go into startups as an employee expecting to learn, but don't expect a big pay out. If you get one, count yourself lucky and enjoy.