Does the compensation listed on YC jobs include stock converted to cash?
For example, Retool (https://www.ycombinator.com/companies/retool) claims to be paying $600k to someone with 6 years experience. I find this hard to believe.
Y Combinator Compensation Numbers
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Re: Y Combinator Compensation Numbers
#2For 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 stock. I've personally seen one late-stage YC company doing this - you sign the offer letter with $Xk in stock, then the paperwork shows up later with $(X/4)k in the grant.
If a late-stage startup is including stock-based compensation in this number, I think it's likely they are pricing the stock inconsistent with its class in the 409a valuation. Keep an eye out for this - I think it's a common and dishonest way to boost perceived compensation.
Re: Y Combinator Compensation Numbers
#3Where do you see the $600k figure?
Re: Y Combinator Compensation Numbers
#4It probably is accurate for someone with stock grants from a while ago vesting now. For new hires I'd lower that expectation though.
Re: Y Combinator Compensation Numbers
#5Ask HN:
Re: Y Combinator Compensation Numbers
#6Remember that unless there's a market for those shares, they are effectively worthless. Check places like equityzen to see.
Re: Y Combinator Compensation Numbers
#7For 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.)
Re: Y Combinator Compensation Numbers
#8For 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.
Re: Y Combinator Compensation Numbers
#9Keep 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.
Re: Y Combinator Compensation Numbers
#10Keep 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?