For 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 a company valuation stays flat, stock options are worthless - but RSUs have value) Can you help me understand why? I'd expect if you're granted options at a strike price of $Y, you will still make money as long as the valuation at liquidation time is more than $Y.
Y Combinator Compensation Numbers
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Re: Y Combinator Compensation Numbers
#32Earlier quoted context omitted.
Wait, I can't tell if you're being serious or sarcastic :)
In the ZIRP era esp going into 2021 this could be taken seriously, but those days are long gone Average tech salaries have DROPPED to 2020 or before levels based on what I’ve seen lately
Re: Y Combinator Compensation Numbers
#33Earlier quoted context omitted.
In the ZIRP era esp going into 2021 this could be taken seriously, but those days are long gone Average tech salaries have DROPPED to 2020 or before levels based on what I’ve seen lately
Really? For me it’s been true since 2018. Nobody is working for real.
Re: Y Combinator Compensation Numbers
#34So it’s not-impossible that this is a non-appreciated offer designed to compete with/recruit away from such compensation.
Re: Y Combinator Compensation Numbers
#35Earlier quoted context omitted.
>(If a company valuation stays flat, stock options are worthless - but RSUs have value) Can you help me understand why? I'd expect if you're granted options at a strike price of $Y, you will still make money as long as the valuation at liquidation time is more than $Y.
If the company value stays flat, that means its valuation at liquidation time is equal to $Y
Re: Y Combinator Compensation Numbers
#36Earlier 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.
As a W2 software developer, I've held options at three companies and RSUs at two. I've netted around $30K from RSUs, and netted a loss of $20K from options. Only once did my options "liquify," when a startup I had worked at was acquired. The proceeds were distributed entirely to preferred shareholders and employees were left with nothing, several of us having spent thousands to exercise. I made my bed and slept in it…
There was a mixed metaphor that popped out to me in your comment (and I hope pointing it out doesn't break HN guidelines around tangential annoyances):
> I made my bed and slept in it, so I have no axe to grind
It reminded me of something George Orwell wrote in 'Politics and the English Language':
> A newly invented metaphor assists thought by evoking a visual image, while on the other hand a metaphor which is technically ‘dead’ (e. g. iron resolution) has in effect reverted to being an ordinary word and can generally be used without loss of vividness. But in between these two classes there is a huge dump of worn-out metaphors which have lost all evocative power and are merely used because they save people the trouble of inventing phrases for themselves. Examples are: Ring the changes on, take up the cudgels for, toe the line, ride roughshod over, stand shoulder to shoulder with, play into the hands of, no axe to grind, grist to the mill, fishing in troubled waters, on the order of the day, Achilles’ heel, swan song, hotbed. Many of these are used without knowledge of their meaning (what is a ‘rift’, for instance?), and incompatible metaphors are frequently mixed, a sure sign that the writer is not interested in what he is saying...
> By using stale metaphors, similes and idioms, you save much mental effort, at the cost of leaving your meaning vague, not only for your reader but for yourself. This is the significance of mixed metaphors. The sole aim of a metaphor is to call up a visual image. When these images clash – as in The Fascist octopus has sung its swan song, the jackboot is thrown into the melting pot – it can be taken as certain that the writer is not seeing a mental image of the objects he is naming
https://www.orwellfoundation.com/the-orwell-foundation/orwel...
Re: Y Combinator Compensation Numbers
#37For 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 a company valuation stays flat, stock options are worthless - but RSUs have value) Can you help me understand why? I'd expect if you're granted options at a strike price of $Y, you will still make money as long as the valuation at liquidation time is more than $Y.
Re: Y Combinator Compensation Numbers
#38Keep 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
#39I lead engineering here at Retool -- reach out to snir (at) retool if you're interested in learning more! We're hiring across several key roles, including AI, performance, our core products, and infra.
Re: Y Combinator Compensation Numbers
#40For 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…
You are right, but using the 409a pricing would not really be honest either. (In the sense that the 409a is basically "as low as we could reasonably value this stock" in order to keep the strike prices low.)