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TLDR Stock Options

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Re: TLDR Stock Options

#181

Post by Yizahi »

dllthomas wrote: post #163
jacquesm wrote: post #86

Earlier quoted context omitted.

> This is especially true in this time where even successful companies drag their feet when it comes to IPO. That's a very weird statement. Companies are under no obligation at all to ever offer stock to the public. An IPO comes with all kinds of downsides and many companies simply do not feel the benefits weigh heavier than the downsides. Such as: transparency, SOX, all kinds of restrictions and demands regarding co…

Though if they're hiring people with the enticement of stock, they're arguably under some obligation to somehow allow some liquidity ever.

They are only breaking the spirit of agreement, not the agreement itself :)

Re: TLDR Stock Options

#182

Post by dllthomas »

Yizahi wrote: post #181
dllthomas wrote: post #163

Earlier quoted context omitted.

Though if they're hiring people with the enticement of stock, they're arguably under some obligation to somehow allow some liquidity ever.

They are only breaking the spirit of agreement, not the agreement itself :)

I don't claim that there's legal obligation. I don't claim that there isn't, but I'm not sure where it'd arise from.

Re: TLDR Stock Options

#183

Post by Yizahi »

dllthomas wrote: post #182
Yizahi wrote: post #181

Earlier quoted context omitted.

They are only breaking the spirit of agreement, not the agreement itself :)

I don't claim that there's legal obligation. I don't claim that there isn't, but I'm not sure where it'd arise from.

It was a joke, modified from the recent NSA joke that "NSA only breaks the spirit of the law" :)

I certainly didn't intent any offense.

Re: TLDR Stock Options

#184

Post by sjg007 »

godelski wrote: post #155
sjg007 wrote: post #140

Earlier quoted context omitted.

Your maximum value. This is a function of replacement cost.

"A function" isn't an answer though. Elaborating on weights of said function is. One that would allow the questioner to determine "reasonable". Your answer does not allow for that determination other than by guessing in the dark.

Exactly that's because it's dependent on their situation. How valuable is the business, what specific work they do. , what stage and what growth and are they the people to take it to the next level?

Re: TLDR Stock Options

#185

Post by gwbas1c »

orthoganol wrote: post #39

Yep, IMO unless you are a founder, if your company isn't one of the top companies of the decade your 4-6 years of pay-cut toil as an early employee will likely just not be worth it, at all. The expected value of working at an early startup gets overestimated, by a lot. If you're optimizing your career, either make the most you can at an established company, or start a startup. Or... work at an enlightened startup, th…

Or just keep hopping until you find something that you like and pays what you're worth

Re: TLDR Stock Options

#186

Post by walshemj »

sjg007 wrote: post #116
walshemj wrote: post #77

Earlier quoted context omitted.

Yes FYI last years basic employee (5 year) scheme at BT returned over $200,000 if you maxed out the contribution, Bear in mind this was avaible any employee even a junior engineer (lineman in US speak). Oh and you had zero chance of losing any money and you can take share save money tax free

Always good to work for a monopoly..

lol not for a long time has BT had a monopoly unlike the US which left local monopolys intact

Re: TLDR Stock Options

#187

Post by econner »

temp246810 wrote: post #78

Shit could always hit the fan though. I joined Zenefits when everyone had dollar signs in their eyes. It felt like the roaring 20s (or at least the accounts I've heard of them). How are they doing nowadays? I always say don't compromise on salary for equity. Compromise for the experience, for an entrance into the field, because the chick at the counter was digging you, but not because of some payout you think you'll…

They're still a unicorn aren't they?

Re: TLDR Stock Options

#188

Post by morgante »

robomc wrote: post #167
limelight wrote: post #154

Earlier quoted context omitted.

> they actually have to buy their options Yup. It honestly astounds me how many people don't factor this into their decision-making. Your only equity compensation on joining is the delta between your strike price and the current market value of your stock. This is often very little, far less than you give up in salary at many companies.

How does this tool help you work that out though.

I never said anything about this tool. Do that calculation yourself, if you're looking at thousands of dollars in compensation it makes sense to do the research and unerstand things fully.

Re: TLDR Stock Options

#189

Post by morgante »

blackflame7000 wrote: post #166
morgante wrote: post #153

Earlier quoted context omitted.

I've negotiated with multiple founders and gotten several good offers, including $150k+ salary and single digit equity. The important part is not to fall in love with a company before an offer—a significant number of founders think engineers should work for under-market, and it's not worth talking with them.

If you have the time, Id appreciate advice. I was offered low 6 figures base salary plus 3% equity for a CTO role at a startup. I would be the 4th member Joining. As I know, there is a CEO bankrolling most of it, an expert in the field of the business who is taking little pay, and a marketing guy who is unknown but most likely taking some payment. Prior to the offer letter I built a prototype (out of contract) as a s…

> I was offered low 6 figures base salary plus 3% equity for a CTO role at a startup.

That's not an unreasonable offer. You should try to negotiate it up to around $150k.

> However, I wish to be compensated for the rights to the prototype upon joining as it is about 50k lines of code.

I'd suggest you mostly give up on that idea. It's naive thinking. The market value of this code is close to 0—it's very unlikely anyone else would want to buy it from you. At best, it's just an additional reason to hire you (instead of someone else).

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