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Employee Equity

68 pointsby DanielHover 14 years ago

4 comments

joezydecoover 14 years ago
I'd like to know more about the downsides of RSUs.<p>I've been offered some recently, and I feel like it's just a way of saying "yes, you can have some equity...<i>someday</i>. Meanwhile, you're still in the dark on shareholder issues and you can't see the balance sheets. Keep up the good work".<p>Is that a wrong way to look at this?
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silvajoaoover 14 years ago
This comes at a curious time for me. Just recently a startup didn't start at all, because I and the other would-be co-founder couldn't agree on how to split the equity.<p>Can someone enlighten me please: is a 50/50 split reasonable for 2 founders of a coding-heavy startup, where each founder has roughly the same background? That is what I was asking for. My friend was asking to have 100% equity and I would get a sizable share of sales as a contractor for his company. It was our first startup, neither of us has previous experience running a startup or a business at all.<p>I'm very sad it didn't work out because we worked on the technology for almost 4 weeks and it was promising, and now I feel a bit "guilty" about not having "cooperated", but I just couldn't invest the effort, resources (we have no investment; we would be burning our savings for some months) and yet have no ownership at all of what I was creating and risking into.<p>Any thoughts into this will be greatly appreciated, as I have no other sources of feedback to evaluate my decision.
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hyungover 14 years ago
"If the founders are the top managers in the company, then the typical "non founder employee ownership" will tend to be between 10% and 20%."<p>Does this mean that all the "non founder employees" would split the 10-20% of the equity?
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gacbaover 14 years ago
I'd really like to know this since none of the startups I've been involved with have had positive outcomes (buy out, IPO, merger etc).<p>If you're part of the 10-20% employee ownership, assuming that you have an "average" stake, what percentage of the overall deal do you usually walk away with?<p>I'm expecting this number to be painfully small and hardly f#ck you money, but I'd like to hear from those who have direct experience on this.<p>NOTE: I'm not asking about <i>founder</i> exits, because those are adequately covered in the media and other places. I want to know about all the folks who are in that magic 10-20% of employees. Outlier anecdotal evidence (e.g. Google secretaries, Microsoft mail room folks) need not be mentioned. :)
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