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Y Combinator Compensation Numbers

75 pointsby fleroviumover 1 year ago
Does the compensation listed on YC jobs include stock converted to cash?<p>For example, Retool (https:&#x2F;&#x2F;www.ycombinator.com&#x2F;companies&#x2F;retool) claims to be paying $600k to someone with 6 years experience. I find this hard to believe.

10 comments

philip1209over 1 year ago
For late-stage startups like this, RSUs are common instead of options. Because stock is issued rather than purchased (like an option), I don&#x27;t think this is dishonest. (If a company valuation stays flat, stock options are worthless - but RSUs have value).<p>Either way: A thing to keep an eye out for is startups that describe the compensation value of stock using the preferred stock price, but then issue you common stock. I&#x27;ve personally seen one late-stage YC company doing this - you sign the offer letter with $Xk in stock, then the paperwork shows up later with $(X&#x2F;4)k in the grant.<p>If a late-stage startup is including stock-based compensation in this number, I think it&#x27;s likely they are pricing the stock inconsistent with its class in the 409a valuation. Keep an eye out for this - I think it&#x27;s a common and dishonest way to boost perceived compensation.
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anotherhueover 1 year ago
Remember that unless there&#x27;s a market for those shares, they are effectively worthless. Check places like equityzen to see.
opportuneover 1 year ago
This is an attainable, but uncommon, TC for someone who joined F&#x2F;G right out of college and got many promotions very quickly (much more attainable at F than G). At 6yoe even higher TCs are possible at certain financial firms.<p>So it’s not-impossible that this is a non-appreciated offer designed to compete with&#x2F;recruit away from such compensation.
zffrover 1 year ago
Where do you see the $600k figure?
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hiddencostover 1 year ago
Keep in mind that the law only requires salary to be listed. Large companies typically only list salary, because it helps them hide the true compensation numbers.
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AnotherGoodNameover 1 year ago
It probably is accurate for someone with stock grants from a while ago vesting now. For new hires I&#x27;d lower that expectation though.
thehucklecatover 1 year ago
In my startup we track another number in order to normalize our compensation.<p>We do a quick &quot;expected valuation&quot; calculation on the share price and use that, instead of the 409a or the valuation. This is how I actually value it in my own head, so we just kind of canonicalize.<p>example: I think there&#x27;s a 1% chance 1billion a 5% chance we make 100M. A 40% chance we make 20M. So that&#x27;s a 23M and then I calculate the value of an option based on that.<p>Using that, I can then try to &quot;match&quot; a salary from a public company. So we set our comp as 80% of the google levels.fyi data. (Chose google bc it has the fullest levels.fyi data).<p>This gives us a full compensation benchmark for any roles &#x2F; levels. ie a Sr engineers makes 263k. But we pay 140 in cash and 123k in equity.<p>Then I can explain to an engineer. We feel like we&#x27;re paying you as well as you would be paid at google, but you need to believe that we have a 1% chance at a billion. 5% chance at 100M etc. They can easily tweak these expectations too so they can compare offers. If they think there is a zero percent chance of 1B they can adjust the offer themselves in their head.
brigadier132over 1 year ago
On levels.fyi it looks like retool pays an median of $205,000 including salary and rsus.
ChrisArchitectover 1 year ago
Ask HN:
snirover 1 year ago
Opportunistically chiming in :)<p>I lead engineering here at Retool -- reach out to snir (at) retool if you&#x27;re interested in learning more! We&#x27;re hiring across several key roles, including AI, performance, our core products, and infra.
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