

Ask HN: Is this fair compensation as the first employee? - ebafb2

I was offered 1% or $20.00/hour for working as one of the first employees (We are the only programmers on the team). Is this as low as I'm thinking it is? Also, what is the expected amount most "first employees" are given?
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malandrew
The people making you this offer are either greedy or clueless. I would be
wary. Unless these are people with a solid track record in delivering great
products and handling the business side of things, they need you more than you
need them.

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steventruong
You should be receiving salary from the start AND equity regardless of their
funding status on a regular vesting schedule. Pre-funded equity should be a
bit higher. Also if this is prelaunch, you should be getting a lot more.
Practically cofounder status at that point except for the salary component.
Sounds like a bad offer in my personal opinion.

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benologist
1% _or_ $20/hour?

Seems unreasonable, I wouldn't feel comfortable asking any of my guys to make
that choice.

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ebafb2
Sorry, let me clarify a bit. 1% if we stay on once the startup receives
funding, and salary will be negotiated then. Otherwise, if we decide to leave
once we receive funding, we will get $20.00/hour for the work we had put in
prior to funding.

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benologist
So you're working for free, and _if_ they get funding at all (a process that
can take months) you get to choose between 1% equity or $20/hour.

That's even worse...

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kls
Right free = 50% (or equal share if there is more than one partner) if not you
can work on your own idea for free and keep 100%. To me this deal stinks, it
also smells really bad by the fact that salary will be negotiated once they
are funded when you have far less leverage to bargain with. Right now you have
everything that they need yet they want to stack the deck totally in their
favor. My personally experience with individuals like this is they will only
get worse if they do get funding. I would run for that deal fast, it is so low
and so one sided that you will never get a fair deal and if you do they will
look to deprive you of it at any opportunity. They think that you (your role)
are worthless. The offer is evident of this, they have the if we could just
get some laborers to build this we will be rich mentality. They view you as a
cog that is worth $20 an hour, their mentality will not change once they are
funded.

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qq66
I run a VC backed startup and we pay six-figure salary PLUS more than 1%
equity to our first employees.

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devs1010
run away, seriously, the fact that you are even considering this means you
need to turn away from startups for now and focus on getting a job with a
solid company to get some experience

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doctorwho
This might be a good deal if you're working in India.

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ebafb2
Unfortunately this is in California.

