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by tensor 328 days ago
There are more than enough stories about employees complaining that they didn't get a big enough payout on an acquisition or IPO to know that this isn't true. It all comes down to your risk reward preference.

Sure, if you don't want to take a risk then look for a higher salary, and probably at a more established company because even if you have mostly salary and little equity a startup is still risky (and you're making it even more so by putting cash pressure on the company at that stage).

On the other hand, if you want a chance at a bigger payout, you'll want more equity. And yes, you may well not get that payout.

2 comments

> There are more than enough stories about employees complaining that they didn't get a big enough payout on an acquisition or IPO to know that this isn't true.

That's exactly why it is true. If every person who held early stage stock walked out of those events happy then no one would recommend they focus on salary.

The problem is that your risk is compounded because your equity risk is correlated with your salary risk - if one fails the other is likely to fail, too.

Even if each risk is a good one to make separately, it isn’t always good to make both risks.