My manager suggested me to leave?!
Here’s the deal. I was a very early employee at a startup and as a result the value of my equity package grew significantly in the past 3 years, to the point where my TC is now around 900k/y (200k of which is base). Obviously it’s not liquid, but in the past the company has offered limited buybacks for early employees, and I was able to take advantage of those, so that’s the stock price on which I’m basing the 900k number. There is no short term plan for selling the company (3y horizon) but in general the tech is not really exciting, and the quality of the people we hire declines steadily due to competition from FAANG. Still, the company is growing in terms of revenues. My performance is good, and my manager, who is a VP executive in the company and with whom I have a good relationship, told me that in his opinion I should leave and go to a place with better growth for my career (citing FAANG), even if that means lower TC. His point is that I already have a big lottery ticket since I’ve been here a few years and so I have already significant vested equity that I would take with me. The equity that I take with me is roughly valued 3M if the company were to sell at this valuation. Still, the new equity that I vest every month is very valuable on paper, and makes the 900k/y (on top of the 3M) I was talking about. He said he is considering leaving too, for better growth. I have 7yoe and FB offered me 400k for an E5 role last year, so there’s a difference. What would you do? Age:31 Yoe:7 Net worth: 1.3M liquid
Nothing guarantees that your existing company will not go down the hill and crash either. If you want to play it safe and be more motivated everyday, then it’s time to move on.
That’s exactly my boss point. It’s just difficult to rationalize walking away from it, especially due to the buyback that happened.
If a friendly VP is recommending you leave a start-up, then you do exactly that. Consider yourself fortunate to have this guidance from a senior person.
Especially if they’re hinting at going somewhere with more stable equity, might imply something incoming
Actually, the thing that is incoming is that the upper management recently stated firm plans to keep going for 3 more years at a point where we were all kind of hoping that the ship would sell at the current numbers. So some people, such as my boss, are not comfortable investing 3 more years of their life into this, even if they reasonably believe that the outcome shouldn’t be too bad from a company perspective. It’s just the individual technical growth that’s lacking. And I’ve already been here almost 4 years, so that would become 7.
Sounds like he isn’t sharing all the details into something he may have more visibility into.
Actually, the “news” is that the upper management recently stated firm plans to keep going for 3 more years at a point where we were all kind of hoping that the ship would sell at the current numbers. So some people, such as my boss, are not comfortable investing 3 more years of their life into this, even if they reasonably believe that the outcome shouldn’t be too bad from a company perspective. It’s just the individual technical growth that’s lacking. And I’ve already been here almost 4 years, so that would become 7.
I put all that in the post
How do you have 1.3 million in liquid assets if you have only worked for 7 years at a startup?
Because of the buyback I mentioned above. The company allowed me to cash out 20% of my equity. And I also save a good deal from my base and cash bonus.
I know, it’s a side conversation, Hope that’s ok. How did your salary develop over the years and what role are you in?
I started at around 120 and now I’m at 200 base plus some cash bonus. The biggest item is the equity package I got when joining the startup, and refreshers. I’m a standard senior SWE. I have a little more freedom due to me being so early and that’s why I have a good relationship with the VP
Really nice job on the risk - reward side! Kudos
I know you keep saying that the company is going 3 more years. However, if a senior leader is saying “we’re going three more years” then to you saying get out? It means they think what could happen is that the ride into the sunset isn’t a good one. I doubt you’d have the same prices. 3 years or not once the blood is in the water that’s it.
Let's say you stayed for 3 years, and the company did well and got sold. You will be making roughly 3m + (900k *3) = about 6 plus 1m you have liquid. Total $7m You stay and the company did not do well. You will have $1m You left and the company did well. $3m + $1 liquid + $some money saved from 400k salary. Roughly around $4.5 millions. You left and the company did not do well. $1 liquid + $some money saved from 400k TC. Roughly around $1.5m. You decide
That’s like saying that everything is possible. The mathematical average outcome of me staying ((7 + 1) / 2) is roughly the same of me leaving ((4.5 + 1.5) / 2).
If you trust him and his suggestion is to leave, you should follow the hint. You never knew the truth about Frontline. He might be saving off your ass in some sense.
Good god. You can be FIRE so soon. I’d stay get more money and retire early. What’s the point of growth if you don’t need the money. And if you want to grow no need to join Facebook go anywhere with interesting problem after you get your money since money prob doesn’t matter.