Golden Handcuffs
avc.com
Golden Handcuffs
1–10 of 274 posts
Re: Golden Handcuffs
#2Coinbase is an interesting company. They're grossly underrated and laughed off as an online casino, but they invest all that money they make very wisely and strategically to grow the business.
I find another paragraph from that press release interesting:
>Traditionally people expect they need to negotiate for the best package after being hired in a new job. Those that do this well tend to be rewarded, and those that don’t lose out. These negotiations can disproportionately leave women and underrepresented minorities behind, and a disparity created early in someone’s career can follow them for decades. We want to do everything we can to ensure that’s not the experience at Coinbase. All employees in the same position, in the same location, receive the same salary and equity offer. No exceptions.
If this was mandated to be standard practice, instead of the insane approach some countries take with minority quotas and such, we'd be a lot further in terms of equality in the work place. Also salary negotiation favors aggressive and outgoing types, while there might be qualified candidates who get left behind just because of their personality.
Re: Golden Handcuffs
#3Coinbase is an interesting company. They're grossly underrated and laughed off as an online casino, but they invest all that money they make very wisely and strategically to grow the business. I find another paragraph from that press release interesting: > Traditionally people expect they need to negotiate for the best package after being hired in a new job. Those that do this well tend to be rewarded, and those that…
This is just reinventing unions but without the employee's ability to input via collective bargaining.
Re: Golden Handcuffs
#4The C-level to IC comp ratio is still way too astronomical. If a VC is telling you he feels there’s a better way to comp, he has a financial interest in ensuring your loss.
Do not support investor-focused comp models like backweighted vesting (Amazon) or outright fraud like a start-up giving you a stock offer with no percentage or no 409A.
Employees deserve high-quality equity on par with investors. The OP’s suggestion is a major step back in one of the greediest economies in history. Complete non-starter. Don’t let this guy live in your thoughts rent-free.
Re: Golden Handcuffs
#5The C-level to IC comp ratio is still way too astronomical. If a VC is telling you he feels there’s a better way to comp, he has a financial interest in ensuring your loss. Do not support investor-focused comp models like backweighted vesting (Amazon) or outright fraud like a start-up giving you a stock offer with no percentage or no 409A. Employees deserve high-quality equity on par with investors. The OP’s suggesti…
The options offer with no percentage ("we're giving you a very generous 80,000 options"), always blows my mind!!! And often even without a strike price!
Re: Golden Handcuffs
#6The C-level to IC comp ratio is still way too astronomical. If a VC is telling you he feels there’s a better way to comp, he has a financial interest in ensuring your loss. Do not support investor-focused comp models like backweighted vesting (Amazon) or outright fraud like a start-up giving you a stock offer with no percentage or no 409A. Employees deserve high-quality equity on par with investors. The OP’s suggesti…
The options offer with no percentage ("we're giving you a very generous 80,000 options"), always blows my mind!!! And often even without a strike price!
Always ask for a non-diluatable percentage early on.
Re: Golden Handcuffs
#7The C-level to IC comp ratio is still way too astronomical. If a VC is telling you he feels there’s a better way to comp, he has a financial interest in ensuring your loss. Do not support investor-focused comp models like backweighted vesting (Amazon) or outright fraud like a start-up giving you a stock offer with no percentage or no 409A. Employees deserve high-quality equity on par with investors. The OP’s suggesti…
The options offer with no percentage ("we're giving you a very generous 80,000 options"), always blows my mind!!! And often even without a strike price!
I got one of these and was dumb to accept because the finance department claimed the offer was legit. When I started, it turns out the deal to double the valuation to what they advertised... that deal hadn’t been done yet. I left and it took another 6 months to do the deal and the valuation was lower than expected.
If you’re a VC harping on comp, spend your energy calling out frauds. Now that would be an actual public service.
Re: Golden Handcuffs
#8I don't mind Golden Handcuffs.
Its just one part of a companies toolbox to increase retention.
If you would tell me that i get my current additional bonus as it is without splitting it up to 3 years, i would of course take it but i assume that internally they were able to form/create this type of program and the 3 years was an internal bargain chip.
Re: Golden Handcuffs
#9This is a plan that is much worse for employees, being presented as if it were better. At least be honest about feeling like you are paying employees too much equity up front and want to pay them less.
Re: Golden Handcuffs
#10Coinbase is an interesting company. They're grossly underrated and laughed off as an online casino, but they invest all that money they make very wisely and strategically to grow the business. I find another paragraph from that press release interesting: > Traditionally people expect they need to negotiate for the best package after being hired in a new job. Those that do this well tend to be rewarded, and those that…
This seems like it will just result in those who can be underpaid being hired at lower levels. If a hiring manager really wants someone and they can't pay them more, they can hire them at a higher level.
If decisions are made by the higher-leveled ICs, then it seems like even more decisions will be made by white men under this culture.