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salem | 10 years ago

Longer exercise windows and more info are great and all, but if you are still expecting employees to take less than market rate salary in exchange for options, you should be giving people the same equity and terms (e.g. liquidation preferences) that investors get for the cash that you forgo.

Founders I've talked to are sympathetic and see it as fair, but none have the courage to try it.

discuss

order

sskates|10 years ago

Not sure that giving liquidation preferences to common stockholders would be fair- the idea with a 1x liquidation preference is that money into the company at least first goes to repaying the principal on the investment first before rewarding any upside.

salem|10 years ago

What's wrong for asking for the same terms as the latest round?

Let's acknowledge that there is an opportunity cost for early hires.