[matchagaucho]

$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.

[tptacek]

Nitpick: that salary is also subject to taxes.

[forgotmysn]

as is the vested equity. not to mention the cost of exercising the shares

[tptacek]

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.

[abritinthebay]

Is the startup getting them to work for free? If so the engineer is a sucker unless they’re a cofounder.