On levels.fyi it looks like retool pays an median of $205,000 including salary and rsus.
Y Combinator Compensation Numbers
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Re: Y Combinator Compensation Numbers
#12Keep in mind that the law only requires salary to be listed. Large companies typically only list salary, because it helps them hide the true compensation numbers.
why is the salary not listed in this posting then?
https://retool.com/careers/technical-account-manager--succes...
Re: Y Combinator Compensation Numbers
#13For late-stage startups like this, RSUs are common instead of options. Because stock is issued rather than purchased (like an option), I don't think this is dishonest. (If a company valuation stays flat, stock options are worthless - but RSUs have value). Either way: A thing to keep an eye out for is startups that describe the compensation value of stock using the preferred stock price, but then issue you common stoc…
If anything, RSU compensation is worse than options because of the tax implications. With options you have the option of paying the tax before the appreciation of the equity. With RSUs, you pay at liquidity.
If issued ISOs that are QSBS qualified, no federal tax on the first $10M or 10x your cost basis, whichever is more. 83(b) election is sometimes an option too. RSUs are, as you mentioned, mostly cash comp due to valuation and tax treatment.
(not tax advice, we're just talking lottery ticket mechanics)
Re: Y Combinator Compensation Numbers
#14Keep in mind that the law only requires salary to be listed. Large companies typically only list salary, because it helps them hide the true compensation numbers.
Why don't they adjust the law so the total comp is also required to be listed?
Call you state representative and ask them to. Legislation is iterative.
Re: Y Combinator Compensation Numbers
#15For late-stage startups like this, RSUs are common instead of options. Because stock is issued rather than purchased (like an option), I don't think this is dishonest. (If a company valuation stays flat, stock options are worthless - but RSUs have value). Either way: A thing to keep an eye out for is startups that describe the compensation value of stock using the preferred stock price, but then issue you common stoc…
If anything, RSU compensation is worse than options because of the tax implications. With options you have the option of paying the tax before the appreciation of the equity. With RSUs, you pay at liquidity.
I've seen RSUs issued with single-trigger acceleration on acquisition or IPO.
Re: Y Combinator Compensation Numbers
#16Earlier quoted context omitted.
If anything, RSU compensation is worse than options because of the tax implications. With options you have the option of paying the tax before the appreciation of the equity. With RSUs, you pay at liquidity.
If issued ISOs that are QSBS qualified, no federal tax on the first $10M or 10x your cost basis, whichever is more. 83(b) election is sometimes an option too. RSUs are, as you mentioned, mostly cash comp due to valuation and tax treatment. (not tax advice, we're just talking lottery ticket mechanics)
IIRC, you only get QSBS if you (a) exercise to purchase actual shares while the company is QSBS eligible; and (b) hold the resulting stock for 5 full years.
Re: Y Combinator Compensation Numbers
#17[flagged]
Re: Y Combinator Compensation Numbers
#18[flagged]
Wait, I can't tell if you're being serious or sarcastic :)
Re: Y Combinator Compensation Numbers
#19Earlier quoted context omitted.
If anything, RSU compensation is worse than options because of the tax implications. With options you have the option of paying the tax before the appreciation of the equity. With RSUs, you pay at liquidity.
I've seen RSUs issued with single-trigger acceleration on acquisition or IPO.
typically, the liquidity event is the trigger that takes longer, not the vesting schedule. with options, you can exercise before the liquidity event, and pay taxes on a much smaller income (or none at all in the case of QSBS as a sibling comment noted)
Re: Y Combinator Compensation Numbers
#20Earlier quoted context omitted.
If issued ISOs that are QSBS qualified, no federal tax on the first $10M or 10x your cost basis, whichever is more. 83(b) election is sometimes an option too. RSUs are, as you mentioned, mostly cash comp due to valuation and tax treatment. (not tax advice, we're just talking lottery ticket mechanics)
IIRC, you only get QSBS if you (a) exercise to purchase actual shares while the company is QSBS eligible; and (b) hold the resulting stock for 5 full years.
Correct. You’ll also want a QSBS attestation letter from the finance team or whomever handles equity admin if the IRS comes knocking. Save it with your options grant documentation.