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by chimeracoder 2382 days ago
Looks like they're including RSUs for private companies as equivalent to cash, which dramatically skews the data.

For private companies, RSUs aren't liquid, and ISOs actually cost money to exercise, so they arguably have negative value. Treating them as cash-equivalent makes these rankings very misleading.

3 comments

They're certainly not cash equivalent but I don't think it's disingenuous to include in rankings. The fact is people evaluate that number and even use it as 'competing' offers. It does sway the market liquid or illiquid. I remember when Uber was on a hiring spree a few years ago and was throwing eye-popping numbers. I had several friends switch to Uber or other companies and use the Uber offer for negotiation.
Aren't Stripe and Airbnb the only two private companies on these lists? And for both of those I would assume they're doing RSUs, not options? But agreed on the lack of liquidity. Cash is king.
They would be remiss not to include this when making a statement about total compensation.
> They would be remiss not to include this when making a statement about total compensation.

Ideally they would be separated out. But if you have to make a single ranking, it's way more misleading to include RSUs/options for private companies than would be to ignore them.