Do you expect a total comp bump when you move from big company to startups?

Mar 21, 2019 9 Comments

Knowing that big company give me cash whereas small ones gives me equity and only on paper. Thoughts?

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TOP 9 Comments
  • I would, why would you take on more risk for less money?
    Mar 21, 2019 4
    • New / Eng
      pHXp44

      New Eng

      pHXp44
      True, but that’s the gamble.
      Mar 21, 2019
    • Amazon
      Cynimist

      Go to company page Amazon

      Cynimist
      Information assymmetry, agency in impacting equity value, difficulty in valuing options, endowment effect and cognitive biases all come into play here. Early stage options are different than RSUs. Usually better to look at scenario analysis of outcomes to value them. The value is often lower than the RSUs you would get in a public company but the outcome can be much better if the company 10xes.
      Mar 21, 2019
  • Google / Sales
    not_sundar

    Go to company page Google Sales

    PRE
    Google
    BIO
    Sales
    not_sundar
    I would move to a smaller company to 1) get greater responsibilities and experience in new areas that my current job doesn’t allow, or 2) work with an excellent new team in a promising new industry, or 3) get better work life balance by reducing commute/travel/hours etc. If none of the previous things are true, then don’t leave your current job just for the potential of startup equity turning into something substantial. You might not stay there long enough...
    Mar 21, 2019 0
  • New / Design
    Yesterday-

    New Design

    Yesterday-
    Depends on the startup but in general I wouldn’t expect a total comp bump
    Mar 21, 2019 0
  • New
    goodforu

    Go to company page New

    goodforu
    You cannot expect to be paid the same way in a startup
    Mar 21, 2019 0
  • Google / Eng
    J3IFPM

    Go to company page Google Eng

    PRE
    Amazon
    J3IFPM
    Expect paper equity from startup to be from 20x (early stages) to 2x (pre-IPO) bigger to compensate for risk that it's not going fly.
    There are 6 months+ cooldown period even if you join 1 week before IPO. Stock can easily can go down during it.
    Mar 21, 2019 0