
Buffer's Equity Formula and Full Individual Breakdown (2014) - vinnyglennon
https://open.buffer.com/buffer-open-equity-formula/
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jasondelta
The acquisition scenarios are definitely misleading. Employees love to take
future acquisition values and multiply it by their current equity stake, but
it's just 100% incorrect because it ignores future dilution from subsequent
rounds of investment, liquid preferences by investors, settlement of
outstanding debts, etc which will absolutely reduce their cut.

Now it's one thing for employees to personally delude themselves, but it's
just flat out wrong for the company to tell its employees what they can expect
to make in different exit scenarios. The company is definitely opening itself
up to litigation when, say, Employee 12 (0.5% equity currently) only gets
something like $1M after a $600M acquisition, instead of the $3M you promised.

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conanbatt
It would be so easy to price the stocks if they could be traded in the open
market. Professional traders and collective-behavior would solve this for
everyone.

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bagels
Here's the 2019 version.

[https://docs.google.com/spreadsheets/d/11s9VSyf4yaYUsqBKLaVH...](https://docs.google.com/spreadsheets/d/11s9VSyf4yaYUsqBKLaVH78NL8wdl8gXoj5BGAzjIFuc/edit#gid=671465451)

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ummonk
Is it just me or does the engineer to non-engineer pay ratio seem unusually
low?

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brianwawok
You think its normally bigger or smaller?

My guess with pay in the open is the gap is smaller, as more info favors those
making the least.

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ummonk
Yeah, I think the gap here is a lot smaller than normal.

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jdavis703
It seems pretty risky to go out telling non-accredited (and likely naive)
investors how much money they could make. While all the employees getting
access to this equity are “insiders,” this seems like it could come back to
haunt them if an unfortunate situation such as a fire sale acquihire occurs.

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toomuchtodo
Really impressed with how much customer advocates are paid and their division
of equity. Kudos Buffer.

