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by crazygringo
4877 days ago
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Not really. Once you get into understanding how investors, investment and VC, etc. work, the mathematics of risk and payoff become very clear. If you, as an investor, are throwing millions of dollars into a product that requires millions of dollars, and has only a 10% chance of success, then you a commensurate share of the payoff as well, which may even be most of it. At my last job, I got to choose the balance between salary and equity I wanted -- and I really had to calculate if I wanted to earn a little less (or a lot less) in exchange for a greater share of future profits. Or to earn a little more (or a lot more) in exchange for giving that up. And having gained quite a bit of knowledge from the investor side of things, at least here in the tech industry in NYC, I don't think it's accurate at all to say it's "usually an exploitative relationship". At least, as long as employees bother to figure out how it all works. Of course your employer can sack you or withold a raise. But of course you can leave for another company, or tell them you're leaving if they don't give you a raise. But you've got to have enough skill to be of value, and enough negotiating skill not to be taken advantage of, as well. Just like a company has to have enough skill not to hire not to be taken advantage of by its employees -- the employees who don't contribute, the employees who spend more time playing politics, etc. |
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Most employee's do not know, nor know how to find out, their net worth to the company. They definitely do not get offered equity.
Most companies go to some lengths to obfuscate the earnings from their employees and contractually forbid their employees from speaking about their own earnings. Most employees, even if armed with such knowledge, do not have the power to demand their worth as there are a large queue of eager replacements for their position.
My point was essentially, if someone thinks they are trading off rewards / equity / ip royalties etc for job security, they probably do not have a good understanding of their relationship or value to their employer.
Don seems to have known full well what he was trading off, and as he explained when he drew the line and exercised his right to negotiate "they simply refused to actually ask permission". They refused to negotiate as they were so used to being in a position of power.
"But you've got to have enough skill to be of value" I would say, you have to have enough skill to be of 'great' value.. then you have the power to negotiate or go elsewhere. If you do.. more power to you!