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Windsurf employee #2: I was given a payout of only 1% what my shares where worth

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Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#381

Post by munksbeer »

azinman2 wrote: post #184
djoldman wrote: post #138

Earlier quoted context omitted.

Indeed. Likewise with non-guaranteed bonuses (gotta love the "plus a discretionary bonus!" commentary during offer discussions). It's always worth offering to take equity as long as they agree in writing to not ever dilute your shares and vest them immediately. However, it's unlikely that any company will agree. It's best to imagine compensation as exactly one's salary. Then (virtually) all surprises are good.

I don’t see how a company could promise this. Everyone gets diluted for every funding round, for example.

I don't know how this works, but my question is, on a funding round, couldn't the C suite just allocate themselves additional equity in proportion so that their total value remains the same?

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#382

Post by pjerem »

Retric wrote: post #319
justinclift wrote: post #313

Earlier quoted context omitted.

[flagged]

You pay for health insurance in every single county, either directly or through higher taxes.

Except that through taxes, your coverage is not dependent on your contribution and your contribution depends on your revenue.

Typically you contribute nothing if you have no revenue and you are still as much covered as the next rich guy.

That’s a huge difference. It means that you can see a doctor or have an ambulance transport you to the hospital for an expensive emergency surgery for 0€ whoever you are. And for the expensive drugs you need after that ? That’s still 0€ with no paperwork.

But to be fair, I’m exaggerating. You may have a 1€ franchise when you see the doctor.

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#383

Post by ikari_pl »

AceJohnny2 wrote: post #371
Thorrez wrote: post #344

Earlier quoted context omitted.

Here's a $2M 4-3 2279sqft very-nice-looking home in Santa Barbara: https://www.zillow.com/homedetails/5436-Agana-Dr-Santa-Barba...

offtopic, but I love comparing realtor glamour shots HDR'd out the wazoo with StreetView https://maps.app.goo.gl/2aEXsdH9hU3o4SZw5 (winter, March 2012)

Still not bad

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#384

Post by saagarjha »

pembrook wrote: post #190
mawadev wrote: post #71

I'm waking up personally to the unethical side of Software development as well. You can either do little and get paid pocket change or you can provide a ton of value for pocket change next to some promises lulling you in, where the value of your work exponentially increases, but you will see nothing of it and whatever you do: you are still a replaceable cell in excel to them and there will be ways where you get dragg…

Okay, but how much do you think you deserve as an employee who has invested none of your money in the company and decided to join on a 6-figure salary only after the company is already through YC, is funded by top investors and looks attractive? If you’re instantly replaceable by any dime-a-dozen engineer than can install packages on npm and use react components and add a thumbs up to slack messages…to not get accide…

Do you think founders deserve 100x more money because six weeks ago they sat in a few meetings with Y Combinator that went well?

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#385

Post by Xylakant »

munksbeer wrote: post #381
azinman2 wrote: post #184

Earlier quoted context omitted.

I don’t see how a company could promise this. Everyone gets diluted for every funding round, for example.

I don't know how this works, but my question is, on a funding round, couldn't the C suite just allocate themselves additional equity in proportion so that their total value remains the same?

They could, but the shares represent value - and that money needs to come from somewhere. Simple, but extreme example: A company is valued at 10 million gobbledoks, and the C-Suite holds 10%, representing 1 Million valuation. Now the company takes 10 Million gobbledoks Investment that end up in cash on the companies bank account. This raises the the valuation to 20 Million.

Under simple dilution rules, the Investor takes 50%, and the existing shareholders are diluted to 50% of their stake - the C-Suite owns 5% of 2 Million, 10 million as before.

If the C-Suite demands that their equity proportion remains at 1%, they’d suddenly own a stake representing 2 million valuation. That difference needs to come from somewhere.

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#387

Post by tjpnz »

kome wrote: post #349

this is something that my feeble European brain will never understand: why people in American start-up keeps getting scammed with pseudo "private" equities, stock options, that are not on a market, and therefore cannot be priced? equities surrounded by very obscure (or no) legislation, that if you get fired or decided to leave you cannot keep. it just make no sense but americans loves them.

If you've convinced yourself that layoffs are a normal (and accepted) part of a career you'll have no issues believing in this crock either.

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#388

Post by nkmnz »

pjerem wrote: post #380
akshitgaur2005 wrote: post #348

Earlier quoted context omitted.

May I ask which nation?

That’s the description of most European countries.

lol no. Private health insurance in Germany is ~800-1000 for a 60 y.o. – public insurance might be cheaper, but you need to qualify for that when you move here by working as an employee when you're that old. Working permission will require you to work full time. So you'll end up working full time and pay ~600-1200 (based on your salary) in contributions.

Re: Windsurf employee #2: I was given a payout of only 1% what my shares where worth

#389

Post by daniel_iversen »

baq wrote: post #357
neilv wrote: post #201

Earlier quoted context omitted.

> equity should be an incentive [...] and partial compensation for [...] One should value it at precisely $0 in terms of life planning.* Not very good incentive or compensation, if you have to value it at $0.

Still better than a lottery ticket.

Not if you live in a country where you can end up paying more taxes than the equity is worth! Be a little careful with Options and RSUs depending on where you live, and even more so for certain companies etc
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