Hacker News new | ask | show | jobs
by derekdahmer 1857 days ago
> Even at $500k/yr, it's 20 years—a whole working life—to make it to $10m

Just one nitpick here, FAANG companies have 2-5x’d in the last five years so with $250k of equity in this example would have had an actual comp of $750k-1.5m/year which would leave you set-for-life rich in just 5-10 years no matter which one you chose.

If you have access to a FAANG job and are optimizing for expected return you have to ask yourself - is it more likely this billion dollar company doubles in value or a seed stage startup that you have 0.5% of becomes a billion dollar company?

1 comments

Perhaps, but it's possible to invest in Google via the stock market. I'm not sure it makes sense to bake in the stock market performance of a public company when considering value of their "equity." It seems like you should be using whatever your standard discount rate (S&P 500 or NASDAQ)?
FANG equity packages are an implicit buy option that lasts 4 years. $1 million dollars of options that lasts 4 years is very expensive and very lucrative.

Plus in startup land, your missing that equity half, so you can't take that money and go invest it in google like you could working at FANG.