
1% of Nothing is Nothing. Why offer equity in compensation packages? - gozmike
https://medium.com/@katerosebee/1-of-nothing-is-nothing-43699f2d7d13#.ucaco47qp
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hardcandy
Modern day Silicon Valley is built on somewhat of a gold rush mentality. Why
do you think people move out here and put up with much of the locally curated
insanity? Because they think they have a chance to strike it rich. Maybe even
really, really rich. And they're right; they probably have a better chance
here than anywhere else in the world. Startup equity is what keeps people
plugged into this particular Matrix. I love Silicon Valley but I recognize it
for what it is.

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Apocryphon
Maybe, much like employers offering medical benefits as a way to compete on
compensation with each other, it's a differentiator that used to make sense at
one point but has since spiraled out of control.

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jomamaxx
Actually, you can calculate the value of an equity packages, since the 1980's
we've been able to intelligently price options (see: Black-Scholes) - but it's
a matter of being able to wrap a good probability distribution around future
outcomes.

I suggest that the current packages are roughly reasonable. If anything, what
staffers need to do is understand them a little better.

