Comment on Think about EquityparentComments−matchagaucho8y$1M in stock sounds great... until you realize it's actually $600K after taxes.With a 4 year vest, that equity is worth $150K per year. About what a Top Engineer sacrifices in salary to go work at a start-up.−tptacek8yNitpick: that salary is also subject to taxes.−forgotmysn8yas is the vested equity. not to mention the cost of exercising the shares−tptacek8yRight, he started by pointing out the tax haircut of equity. But he moved the goalposts when he compared the nominal dollar cost of foregone salary to the after-tax value of the options.It's a nitpick. The underlying point stands.−abritinthebay8yIs the startup getting them to work for free? If so the engineer is a sucker unless they’re a cofounder.
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$1M in stock sounds great... until you realize it's actually $600K after taxes.
With a 4 year vest, that equity is worth $150K per year. About what a Top Engineer sacrifices in salary to go work at a start-up.
Nitpick: that salary is also subject to taxes.
as is the vested equity. not to mention the cost of exercising the shares
Right, he started by pointing out the tax haircut of equity. But he moved the goalposts when he compared the nominal dollar cost of foregone salary to the after-tax value of the options.
It's a nitpick. The underlying point stands.
Is the startup getting them to work for free? If so the engineer is a sucker unless they’re a cofounder.