
Should I accept startup equity based on profitability? - jamesku
https://www.quora.com/unanswered/Should-I-accept-startup-equity-based-on-profitability-Ive-been-given-an-offer-to-be-employee-1-after-the-co-founders-with-a-significant-pay-cut-but-only-1-5-equity-conditional-upon-the-Company-achieving-sustained-profitability-Sketchy?srid=5CTl&amp;share=1
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al2o3cr
Sounds like you're setting yourself up to get "Hollywood accounted", IMO. If
you're going to do that, you'll need to be vigilant about establishing just
exactly what "profitability" means - if the company is bringing in $2M/yr
revenue on COGS of $1M/yr but the founders each decide to pay themselves
$600k/yr, is the operation "unprofitable"?

