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Startup jobs with low salary and negligible equity, what gives?

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Re: Startup jobs with low salary and negligible equity, what gives?

#141
post #137

Earlier quoted context omitted.

You seem to be confusing the expected value of a startup with the value of one's equity. There is a reason that the vast majority of vested stock options go unexercised when employees leave companies. Additionally, you are not factoring in liquidation preferences. Rhetorical question: what's 10% of $10 million when your investors put in $5 million and have a 2x liquidation preference?

You seem to not understand the notion of expected value. If the strike price is a concern, it could probably be negotiated down. I had the impression the they have generally gone down anyway.

> If the strike price is a concern, it could probably be negotiated down.

Please ask a qualified accountant about Section 409A of the tax code and what happens if you're granted stock options at less than fair market value.

Re: Startup jobs with low salary and negligible equity, what gives?

#142
post #139

Earlier quoted context omitted.

>It is normal to be underpaid in this industry relative to the astonishing value a software developer creates, yes. Your opinion of how much value a software developer creates is irrelevant, except to the extent that it influences wages you are willing to pay to others, or wages you are willing to accept, and only that matters to the extent that there is demand for you and/or how many developers you can hire. In the…

> Your opinion of how much value a software developer creates is irrelevant, except to the extent that it influences wages you are willing to pay to others, or wages you are willing to accept, and only that matters to the extent that there is demand for you and/or how many developers you can hire. Or to the extent that the capitalist class can collude (with the help of useful idiots who have bought into the narrative…

>Or to the extent that the capitalist class can collude (with the help of useful idiots who have bought into the narrative) to avoid paying a wage representative of the value created.

This idea that your wage has much to do with the value you create, well, it's what I believed at your age, too. It's a fun thing to believe when you make more than anyone else you know who is your age. It certainly made me feel valued.

But the idea that what you get paid has very much to do with the value of what you produce is obviously silly, unless you have a definition of value that makes one person working at a hedge fund worth ten civil engineers.

If we're going with economic models, what you are paid has everything to do with supply and demand for people with your skill. The "value" you produce has something to do with demand, but in this case, value is measured in such a way that one hedge fund analyst is worth ten civil engineers, so it doesn't really map to how a normal person thinks of 'value' - and even then? well, there's always the supply side of things to consider. If other people are able and willing to do your job for less money...

>In this industry, "median" is fairly terrible.

Compare it, say, to aerospace. I know guys who have masters degrees from places like MIT working at the local defense contractors. Some of these people are better programmers than I am They can't come within 30% of my salary, and I'm a mediocre sysadmin who barely graduated from one of the worst high schools in California.

And yeah, I mentioned civil engineers; the people who design physical infrastructure. Roads, bridges, sewer and water systems. They make even less; even with advanced degrees and experience, they are lucky to make half what I do.

I mean, yeah. there are other job types that make more money than people who build and support web applications. But compared to, really, everyone but the top-ends of finance, legal, management and medical, we have it pretty good.

People whine about making only $100k/yr and having to pay bay area housing prices. What do you think it's like for the people that clean your bathrooms? that make your food?

We have it pretty good. I mean, I'm not saying that you shouldn't try to get more, or that it wouldn't be great to get paid more, I'd certainly enjoy a bigger house and a nicer car, and maybe a driver... but sometimes you need to sit back and recognize that even if you aren't in the 1%, well, life in the top quintile isn't bad at all.

Re: Startup jobs with low salary and negligible equity, what gives?

#143
post #142

Earlier quoted context omitted.

> Your opinion of how much value a software developer creates is irrelevant, except to the extent that it influences wages you are willing to pay to others, or wages you are willing to accept, and only that matters to the extent that there is demand for you and/or how many developers you can hire. Or to the extent that the capitalist class can collude (with the help of useful idiots who have bought into the narrative…

>Or to the extent that the capitalist class can collude (with the help of useful idiots who have bought into the narrative) to avoid paying a wage representative of the value created. This idea that your wage has much to do with the value you create, well, it's what I believed at your age, too. It's a fun thing to believe when you make more than anyone else you know who is your age. It certainly made me feel valued.…

"Don't complain, you're doing better than the poor!" is transcendentally fucking evil--a word I do not use lightly, but you're happily sucking down the disease of the middle class. The rich guy takes nine cookies. He elbows you and says, "hey, that poor guy's gonna take your cookie!". And you hop to.

I don't want the poor guy's cookie. I want the rich guy to actually spread it frigging around so we can moor compensation to value created--to the poor guy, the civil engineer, and to me. But instead, the rich guy and his rich guy friends collaborate to keep the rest of us in a position to keep working for them and to never, ever, ever get within arm's reach of real success ourselves (unless you want to play the roulette game of startups, where you'll enrich them long before you see a dime).

But clearly I'm just an ingrate.

Re: Startup jobs with low salary and negligible equity, what gives?

#144
post #142

Earlier quoted context omitted.

>Or to the extent that the capitalist class can collude (with the help of useful idiots who have bought into the narrative) to avoid paying a wage representative of the value created. This idea that your wage has much to do with the value you create, well, it's what I believed at your age, too. It's a fun thing to believe when you make more than anyone else you know who is your age. It certainly made me feel valued.…

"Don't complain, you're doing better than the poor!" is transcendentally fucking evil --a word I do not use lightly, but you're happily sucking down the disease of the middle class. The rich guy takes nine cookies. He elbows you and says, "hey, that poor guy's gonna take your cookie!". And you hop to. I don't want the poor guy's cookie. I want the rich guy to actually spread it frigging around so we can moor compensa…

>"Don't complain, you're doing better than the poor!" is transcendentally fucking evil-- a word I do not use lightly,

Yeah. I think you use "Evil" lightly. I mean, I do too, but that's mostly because I live a sheltered and comfortable life, much like you probably do. Seriously, listen to yourself. You are calling me "Evil" for saying "Hey, perhaps you should count your blessings"

I mean, I understand the people who think I'm evil if I don't give the homeless guy a buck; I don't really agree with them, but I can see their point. I don't see your point.

>I don't want the poor guy's cookie. I want the rich guy to actually spread it frigging around so we can moor compensation to value created--to the poor guy, the civil engineer, and to me. But instead, the rich guy and his rich guy friends collaborate to keep the rest of us in a position to keep working for them

I'm not saying you are wrong... But what are you gonna do about it? I don't think you are going to find very many people in our income tax bracket who are willing to risk all for a few more bucks.

More to the point, popular action is going to target us - look at where income tax brackets top out. To most people, at that point? you are rich. I mean, I'd like it if they stretched it out further, and eliminated the capital gains loophole, but to your average voter, I'm one of the rich fucks who ought to get soaked.

> and to never, ever, ever get within arm's reach of real success ourselves

what is real success to you, if not this? I can live pretty comfortably for a year off of three months pay.

My point, here, is that you can spend your time and effort and emotional energy railing that other people are in some ways unfairly slightly better off than you are, or you can focus on, you know, living your life.

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