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by bit_logic 3217 days ago
The main reason for this is RSU. The base salary at those companies is not much more than rest of industry. But at senior levels the RSU matches or exceeds the entire base salary.

Other companies have a hard time matching this. Startups try but the common wisdom now is to value those at zero. It seems only public traded companies stock is now considered as having value. And only public SV tech companies give these massive RSU to engineers. Other public companies don't do this. And they are not willing to match the RSU amounts with cash. It's possible this situation will only exist as long as this bull market. When the stock market bear comes, will these tech companies continue the massive RSU? And if not will they replace it with cash?
3 comments
cynicalkane 3217 days ago
There's a point to this if you get a good startup job offer, but probably 95% or more of startup job offers are terrible. "You'll earn 50% below market, but if we make billions, your options will be worth a few hundred K per year once we have a liquidity event." No thanks.

For big companies that pay market rates, stock can be valued, and GAAP actually requires it. So they're not saving any money on paper paying you in stock. Your total comp is their total comp.

Usually, when you get a good offer including stock, it's from a company with worthwhile stock. Most startup offers aren't worth it even in wildly good scenarios.

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yahna 3217 days ago
But they are totally taking on all the risk and hard work. YOu just have to work insane hours for half of your worth with the risk of getting fired. That's no risk at all compared to being a founder, you should be grateful they gave you that (pre-dilution) 0.015% as employee number 1. After all you get ot build something great!
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megous 3217 days ago
Which is funny, given that much of their risk is probably just to reputation, if they are funded from angels and operate as a LLC, or whatever.
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gozur88 3217 days ago
I always assumed founders put at least some of their own money into the venture. Isn't that the norm?

Were I a VC I wouldn't back someone without skin in the game.

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gpvos 3217 days ago
RSU = Restricted Stock Unit, https://en.wikipedia.org/wiki/Restricted_Stock_Unit
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yahna 3217 days ago
When you are north of 150k in base that's already considered pretty high for a lot of these other companies.

Then you add in stock, bonus, etc... Adds up to a huge package.

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