Comment on Founder Paydays at Exit (IPO)parentComments−parsley275yDo employees get screwed, or is it just that too many of us employees sign on and see the word equity and think that means we're suddenly co-founders?−eloisant5yWhen a founder tells you "the salary is low, but you get equity" he is screwing you.If you take a market salary, and see equity as what it is (a lottery ticket that might, maybe get you a few tens of grands) then it's fine.−seattle_spring5yDefinitely the former, unless you feel that only co-founders deserve market pay and equity that pays out at >$0. In many cases, employees even lose money because they have to exercise options with no insight into if they'll ever be worth a dime.
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Do employees get screwed, or is it just that too many of us employees sign on and see the word equity and think that means we're suddenly co-founders?
When a founder tells you "the salary is low, but you get equity" he is screwing you.
If you take a market salary, and see equity as what it is (a lottery ticket that might, maybe get you a few tens of grands) then it's fine.
Definitely the former, unless you feel that only co-founders deserve market pay and equity that pays out at >$0. In many cases, employees even lose money because they have to exercise options with no insight into if they'll ever be worth a dime.