Stable doesn't really describe early stage startups at all. Just because there is a paycheck doesn't mean there will be one when a big account falls through.
But anyway, I would urge founders to think more about the logarithmic utility of money and whether it makes sense to take 30x+ the gains of early employees. In particular, think of the number that make it all worthwhile and ask if you need to capture all the gains above that, or whether you could be more generous if you hit it out of the park, and if there is a way to write that into your contracts.
Why should leaders and team builders be more “equitable” than what is transactionally afforded by their diligent appreciation of their assets? How is the utility of money not best suited for those who created something from nothing versus those who entered into the tent after it was pitched? Aren’t there gradients of personal ambition being demonstrated between the two parties? If so, wouldn’t society be abler if the leaders were able to do more after having created the opportunity in the first place?
The generosity emerges out of the availability for lending the capital to strangers in society thanks to the successful investment realization.
We're in a thread talking about how equity compensation at startups is generally not sufficient to overcome the pay cut that folks would take from working at a top tier tech company, so even if you come at this from a purely transactional perspective, you may want to be less stingy with equity.
You can do whatever you want of course, but I think people should ask themselves if trying to hold onto all the returns is helping them achieve what they actually want.
> equity compensation at startups is generally not sufficient to overcome the pay cut
... so don't take the job. Everything will naturally sort itself out -- a startup will increase their grants, hire different people, or not hire and fail. :shrug:
This thread sure looks like it's full of people who can't get that well paid job at google, are taking jobs at less demanding employers out of necessity, and are mad about it. Otherwise, we're living through one of the absolutely hottest markets for engineering talent we've ever seen, so getting a new job is always an option if you're worth the money.
As for founder vs employee risk... certainly at my company, every employee except for the founders walked into a six figure cash comp, fully paid health insurance, and a runway that's never fallen below 12 months.
But anyway, I would urge founders to think more about the logarithmic utility of money and whether it makes sense to take 30x+ the gains of early employees. In particular, think of the number that make it all worthwhile and ask if you need to capture all the gains above that, or whether you could be more generous if you hit it out of the park, and if there is a way to write that into your contracts.