[HN Gopher] How to Not Get Screwed over as a Software Engineer [...
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       How to Not Get Screwed over as a Software Engineer [video]
        
       Author : simonpure
       Score  : 198 points
       Date   : 2023-11-02 12:53 UTC (10 hours ago)
        
 (HTM) web link (www.ycombinator.com)
 (TXT) w3m dump (www.ycombinator.com)
        
       | Xeoncross wrote:
       | As a higher income earner I've always found it important to spend
       | the money to ask a Lawyer, CPA, second Doctor, Mentor, Coache,
       | Inspector, and other people focused on a certain niche in life
       | what they think for the $100/hr (or whatever) fee they charge.
       | 
       | Always been worth it. If you're focused on tech, make sure you've
       | hired the right people to review your NDA's, startup contract,
       | new home purchase, or workout routine.
       | 
       | Don't risk millions on a startup IPO / house / loved one without
       | dropping a few hundred on a second/third opinion. You've got the
       | money. Don't cheap out on important things when you could have an
       | all-star team backing you.
        
         | munk-a wrote:
         | _Especially_ if you 're going through an IPO or ownership
         | exchange - put every document in front of a lawyer and
         | accountant. You don't want to miss your opportunity to sell or
         | make a mistake on the taxes.
        
         | jfim wrote:
         | How do you work with/find a lawyer? Do you have them on a
         | retainer agreement?
        
           | dustingetz wrote:
           | upcounsel.com, cash hourly, contract review in usa will be
           | like $300
        
           | Terretta wrote:
           | Find and work with a lawyer that helps engineers extract
           | themselves from one firm to land at a specifically competing
           | firm.
           | 
           | Since most engineers don't hire lawyers, it may be easier to
           | find a lawyer that does this for Firm Z, to pull people from
           | competing firms A - Y.
           | 
           | In either case, ideally they will have had to go to
           | arbitration and/or court against the original employer.
           | 
           | This person will know what to look for in masses of
           | boilerplate to help you zero in on and fix the 10 words here
           | and there that can change not just your comp but your career
           | options.
           | 
           | Expect from $300 - $750 / hr, depending on the size role
           | you're lawyering, which tends to indicate the amount of
           | legalese, traps, and foot guns at play.
        
           | sebmellen wrote:
           | https://upcounsel.com is great for this. You basically post a
           | "job" and get proposals from multiple lawyers with upfront
           | pricing, deal structure, etc. and everything is negotiated
           | through the platform.
        
         | ChrisMarshallNY wrote:
         | Here's a submission that I made this morning (never made it out
         | of new):
         | 
         | https://news.ycombinator.com/item?id=38111370
         | 
         | It's an old video of a lecture Mike Monteiro (and his lawyer)
         | did.
         | 
         | Kinda speaks to this.
        
         | slap_shot wrote:
         | I'll second the opinion of having your contracts reviewed, but
         | will curb some expectations: most contracts (NDAs, employment
         | agreements, home contracts etc) are fairly standard. There may
         | be some small points to negotiate if they are off-market, but
         | you had better have the leverage to negotiate.
        
           | wavemode wrote:
           | That's a valid thing to keep in mind with big corporations.
           | But if you're joining as employee number 5, and they claim
           | they aren't willing to negotiate on something you dislike in
           | the contract because it's "standard", you should leave the
           | interview.
           | 
           | It's exactly what they're talking about in the linked video -
           | you think you're joining as a valued partner, but you're
           | clearly just a cog in the wheel.
        
           | paxys wrote:
           | If you get a SDE offer from Google then sure, there is
           | probably no room for changes other than some adjustment to
           | salary and stock. If you are employee #10 at a startup (which
           | is what this video is about), _everything_ is negotiable, and
           | you are shooting yourself in the foot if you don 't go over
           | your contract with a magnifying glass and professional help.
        
         | cyrialize wrote:
         | I like the mention of a workout routine. Trainers/physical
         | therapists can help to figure out issues with your body and
         | give you a list of stretches/exercises to help with it.
         | 
         | I've spent my fair share of getting injured through lifting and
         | each time I've bounced back because a video that a PT has
         | shared has a patient with the same exact issue as me.
         | 
         | I wonder how many injuries I could've avoided if I actually set
         | up a session haha.
        
       | ldjkfkdsjnv wrote:
       | How to get rich in tech as a mediocre programmer:
       | 
       | 1. Transfer to a TPM/QA Manager role at somewhere like Amazon or
       | Microsoft. Bar is much lower to get into this role.
       | 
       | 2. Get hired into a higher level than you could in a SWE role.
       | 
       | 3. Transfer within the company to being an SDM
       | 
       | 4. Now you are one level higher, in a management role, that would
       | have taken you 5+ years of grinding and some luck to get into.
       | 
       | 5. Spend a few years in this role, switch to other big co, makikg
       | 400-500k+ while bossing around engineers much smarter than you.
       | 
       | ^This path is how people are doing it. Never take equity in a
       | startup, never grind away as a mid level engineer, fighting with
       | ten other engineers for one promotion.
       | 
       | Edit:
       | 
       | Adding one point to this, if you found a company with a non
       | technical CEO, and the company sees some success, all the focus
       | will be on the CEO. The CTO role is highly replaceable, and there
       | is a massive power shift that occurs once there is traction with
       | a "finished" product. The CEO, especially in B2B Saas, is the
       | face of the company. So the CEO can sit on his hands the whole
       | time the product is developed, but then does reap huge gains.
       | There's no easy answer, as many engineers do not have the soft
       | skills for the role. But arguably, they could run these
       | businesses themselves.
        
         | raincom wrote:
         | A great insight, indeed.
        
         | nine_zeros wrote:
         | Do not work at Amazon or amazon-like companies. They are just
         | not worth it from a mental health, wlb, or career perspective
         | for engineers.
         | 
         | Find engineering/product first companies. Big tech ain't it any
         | longer.
        
           | teachrdan wrote:
           | What would you recommend instead?
        
             | munk-a wrote:
             | Work at a company making a product you believe in and with
             | coworkers that you get along with.
        
               | sumtechguy wrote:
               | I can not emphasize enough getting along your coworkers
               | and they with you. If you do not it will be even more
               | challenging to get anything done.
        
             | midasz wrote:
             | I'm loving (semi-) government. Great work/life balance and
             | at least in the Netherlands pretty innovative and into
             | open-source.
        
             | dogman144 wrote:
             | What linked current Big Tech was early entrants into adtech
             | and the related money-printing machine.
             | 
             | Now they are just large advertising platforms that do
             | something to attract users and user data.
             | 
             | I think under similar logic, if you want to work for those
             | companies for comp/prof development, it's probably whatever
             | next money printer is building out.
             | 
             | IMO this is probably AI, next-gen adtech that keeps the
             | technology going post-GDPR etc (platform plays like FAANG
             | or great user enumeration companies in the open ecosystem,
             | although a lack of a non-obvious adtech product might limit
             | the growth and prestigious of these types) maybe some top
             | cybersecurity vendors if the problems get worse and
             | regulations get serious, maybe defense tech (second gen
             | ones following what Palantir did).
        
             | nine_zeros wrote:
             | > What would you recommend instead?
             | 
             | My personal preference and risk appetite takes me to
             | successful small public companies or well-funded startups.
             | 
             | If I don't have a risk appetite, I'd go government or
             | boring F500 companies that are starving for engineers.
             | 
             | Wherever I go, I am very particular about the mission and
             | that I get along with the team and manager. The less the
             | bureaucracy, the more likely I am to enjoy working for
             | them.
             | 
             | But there is no way I will work for big tech with their
             | miserable processes, culture and exploitative management. I
             | am here to work, not to constantly walk on eggshells for BS
             | rules.
        
           | Ancalagon wrote:
           | I actually would echo this at the skills level. A lot of the
           | bigger companies kind of pigeonhole your skillset to one tech
           | stack that is very company-specific and introducing new tech
           | can be very difficult. At least that was my experience in my
           | last three big corporate positions (now at a series C
           | startup).
        
           | scarface_74 wrote:
           | I've said the best thing that happen to my career and
           | finances was to work at AWS for three years. The best thing
           | that ever happened to my mental health was to get PIP'd from
           | Amazon with a $40K severance, Amazon on my resume and finding
           | a job three weeks later.
        
         | siliconc0w wrote:
         | Sadly this is mostly true. It used be at $bigtech you needed to
         | be the equivalent of a senior engineer (L5+) to go into
         | management. This is categorically not the case anymore.
         | 
         | TPMs, due to their role, work across orgs and interface more
         | with leadership so they do seem to get a lot more
         | visibility/exposure than normal ICs and do seem to get promoted
         | into leadership positions more easily. My wife is less
         | technical and is looking for a career change and last year I
         | literally suggested this path for her.
         | 
         | (you can argue separately that this isn't as important which I
         | might agree with on a case by case basis in that I've seen
         | really strong leaders who are less technical who make up for in
         | various ways but it's not the common case).
        
           | ldjkfkdsjnv wrote:
           | I think alot of engineers are under the impression that if
           | they work hard enough they will be promoted. But actually,
           | the company gains the most from highly productive mid level
           | engineers. These are the workhorses, they do not want to
           | promote them.
        
             | scarface_74 wrote:
             | You never get promoted for "working hard". You get promoted
             | by showing your ability to work at a larger "scope",
             | showing "impact" and "dealing with ambiguity". All of the
             | leveling guidelines of tech companies I've seen or heard
             | about have the same concepts.
        
               | ldjkfkdsjnv wrote:
               | The whole "scope" argument is the carrot on the stick.
               | Many engineers, regardless of performance and scope, will
               | not get promoted. They are more valuable to the company
               | as work horses, even if they have higher level capacity
               | and have shown that.
        
               | scarface_74 wrote:
               | I don't disagree with that. The best way to get a
               | "promotion" is to work toward more scope, impact,
               | ambiguity - and then leave.
               | 
               | Or in my case get PIP'd from Amazon with a nice severance
               | and found a much less stressful job within three weeks at
               | a smaller company. My hearts always been at smaller
               | companies and I knew from the minute I virtually walked
               | into AWS I wanted to go back to smaller companies.
               | 
               | https://news.ycombinator.com/item?id=37969302
        
               | passion__desire wrote:
               | What about the ambiguity engineers cut through when
               | making decisions like whether to use "React" or "Svelte"?
               | and subsequent success or failure, whatever the case may
               | be. Are these decisions less important that top level
               | ones?
        
               | scarface_74 wrote:
               | That's not what is meant by ambiguity.
               | 
               | I was actually just interviewing someone for a position
               | for a green field project where I'm leading the backend
               | parts across teams. I needed to be able to "fire and
               | forget" an assignment where the requirements weren't
               | clear and there will probably be a lot of XYProblems.
               | 
               | I need them to talk to the vendor/customer, come up with
               | a game plan, research the technology and present their
               | idea to the team. I want them to know how to talk to
               | developers, technical directors who don't want to get
               | into the weeds and non technical people.
               | 
               | After they have done the research - especially about a
               | technology I don't know - I want to lean on them to teach
               | me and for me to be able to go to for advice.
               | 
               | I've given the thumbs up plenty of times for team members
               | and now dotted line reports that impressed me by giving
               | me "imposters syndrome".
        
             | timfsu wrote:
             | Organizations are generally pyramids, where you have fewer
             | people on top than on the bottom. You can't promote
             | everyone, so you have to decide on criteria - and hard work
             | in software engineering isn't always high-leverage work. In
             | my experience the best engineers can figure out the right
             | work to get done, saving hours of hard work that never even
             | needed to happen.
        
           | ryandrake wrote:
           | > TPMs, due to their role, work across orgs and interface
           | more with leadership so they do seem to get a lot more
           | visibility/exposure than normal ICs and do seem to get
           | promoted into leadership positions more easily.
           | 
           | TPM here. More cross-org work: Yes. Interface more with
           | leadership: Yes. Visibility/exposure: Yes. Easier promotions?
           | Nope. Not in my experience.
           | 
           | There are fewer of us, therefore our org chart trees don't
           | grow as fast as engineers' trees, therefore there are fewer
           | opportunities to add a layer and move into it as a manager.
        
         | onion2k wrote:
         | _while bossing around engineers much smarter than you_
         | 
         | How much smarter than you are they if you've taken an effective
         | shortcut to getting paid significantly more while doing a lot
         | less work? Working harder, taking all the stress, and earning
         | less doesn't sound _that_ smart.
        
           | supriyo-biswas wrote:
           | Parent is referring to the fact that the technical acumen of
           | this kind of manager is usually far less than the engineers
           | who are working under them, which leads to worse outcomes for
           | the engineers in question (but is a fine career choice and a
           | rational decision for the now manager).
        
           | andy99 wrote:
           | There's an old saying                 If you're so smart, why
           | aren't you rich?
        
             | freeopinion wrote:
             | Better?:                 If you're so smart, why aren't you
             | happy?
        
               | andy99 wrote:
               | I agree it's better - I think the context is a response
               | to people complaining about all the "dumber" people that
               | have it better than them
        
           | JrProgrammer wrote:
           | For a lot of people, work happiness is also a big factor, as
           | it should. You're spending at least 1/3rd of your whole day
           | at your work. Choosing a specific path does not make you
           | smarter per definition
        
           | ravenstine wrote:
           | Not all smart people have a desire to be parasites that are
           | paid several times more than they're worth by a dysfunctional
           | system.
        
             | hotnfresh wrote:
             | But the people in question, in this hypothetical, are
             | working in big tech....
        
             | pb7 wrote:
             | Who decides what they're worth?
        
               | throwaway092323 wrote:
               | > Who decides what they're worth?
               | 
               | The poster above you; they're the one who made an
               | implicit claim about the value of software developers'
               | work. You're welcome to disagree. Do you think everyone
               | is paid fairly?
        
               | pb7 wrote:
               | They're wrong. You're worth what you can fetch. If you
               | _feel_ that it's unfair, find a new bidder and make it
               | fair.
        
           | TacticalCoder wrote:
           | > How much smarter than you are they if you've taken an
           | effective shortcut to getting paid significantly more while
           | doing a lot less work?
           | 
           | Being smart and how much you make aren't related. There are
           | researchers working at universities in Europe being paid
           | miserable salaries and yet making incredible discoveries
           | (like medical ones) and these are incredibly smart people.
           | 
           | Meanwhile there are people with only a few neurons connecting
           | raking in millions on "only fans".
           | 
           | And, no, the later aren't smarter than the former.
        
             | KeplerBoy wrote:
             | That's kind of the European dream. You work at uni, have
             | fun pursuing your reasearch and earn enough money to rent a
             | somewhat nice flat in the city.
             | 
             | What else could anyone want?
             | 
             | Heck, today i saw Sepp Hochreiter sitting in the tram on
             | his way to uni. He could do anything in the world, yet he
             | chooses to live the european academic life.
        
             | nocsi wrote:
             | > Being smart and how much you make aren't related. There
             | are researchers working at universities in Europe being
             | paid miserable salaries and yet making incredible
             | discoveries (like medical ones) and these are incredibly
             | smart people.
             | 
             | Think about it, who's funding these researchers you're
             | celebrating?
             | 
             | I'd argue being smart _is_ linked to money. You don 't need
             | to spend all your time exploiting the markets if you're
             | smart, but just enough to build a resource pool that can
             | enable your endeavors. People work with what they got - in
             | your latter example, they're selling their body. If
             | academics were functionally smart, then it's a simple task
             | for them to be able to exploit and win against a capitalist
             | market.
        
           | rzzzt wrote:
           | That's street smart
        
           | l33t7332273 wrote:
           | >How much smarter than you are they if you've taken an
           | effective shortcut to getting paid significantly more while
           | doing a lot less work
           | 
           | I find it deeply troubling that so many people conflate
           | "being smart" with "min-maxing labor and earning". It
           | reflects the strange belief that the best people are the best
           | capitalists.
           | 
           | I take issue with the thesis that money is crystallized
           | virtue where more of one is more of the other.
        
             | mattgreenrocks wrote:
             | Yeah, it's a pretty gross mindset.
             | 
             | I suppose it is what people need to believe, however. Good
             | luck with that, I guess?
        
             | throwaway092323 wrote:
             | > I find it deeply troubling that so many people conflate
             | "being smart" with "min-maxing labor and earning"
             | 
             | And they're veeeery vocal _other_ people trying to get
             | something for nothing.
        
           | timacles wrote:
           | Life is more complicated than that.
           | 
           | There are smart people burdened with a moral compass, which
           | forces them to "do the right thing" which might be pursuing
           | their passion or contributing to society.
           | 
           | Then there are smart people who are happen to exploit social
           | structures to get ahead. Those becomes the sociopath CEOs and
           | such.
           | 
           | There are also plenty of not particularly smart people who
           | figure out how to get ahead exploiting social structures.
           | 
           | Theres also plenty of smart people, whos intelligence is
           | restricted to their area of expertise. Technical knowledge
           | doesnt transfer to strong political skills
           | 
           | Doesn't make the smart people who actually have a
           | consciousness to answer to less smart than the rest
        
             | bumby wrote:
             | I know there's some correlation between certain Big Five
             | personality traits like consciousness and material success,
             | but now I'm wondering which of those traits may also
             | correlate with IQ.
        
               | hollerith wrote:
               | Openness is probably the one out of the 5 most correlated
               | with IQ.
        
           | aleph_minus_one wrote:
           | > How much smarter than you are they if you've taken an
           | effective shortcut to getting paid significantly more while
           | doing a lot less work?
           | 
           | This is not about smartness, but about willingness for ass-
           | kissing and ability of to play political games. This is not
           | associated with intelligence, but with dark triad traits.
           | Quite some smart people look through all this, but are
           | incapable of changing the situation.
        
           | bumby wrote:
           | They probably mean "smart" as in "technical acumen" not
           | "cunning"
        
           | eikenberry wrote:
           | Money isn't a linear curve where $$$==happiness. More money
           | does have a strong correspondence with happiness until you
           | hit a certain level and then it falls off. A case of strongly
           | diminishing returns where other sources of happiness will
           | outweigh the need for more money. Things like liking your job
           | being a big factor.
        
         | lakomen wrote:
         | Explain acronyms please?
        
           | raincom wrote:
           | TPM = Technical Project Manager; SDE = Software Development
           | Engineer; SDM = Software Development Manager
        
           | stuff4ben wrote:
           | TPM: Technical Project/Product Manager
           | 
           | SWE: Software Engineer
           | 
           | SDM: Software Development Manager
        
           | Apocryphon wrote:
           | To dissent from the other answers- thought TPM was Technical
           | Program Manager.
        
             | BayesianDice wrote:
             | I believe that is (or at least was) true at Google -
             | although from what I knew of the role, it sounded like it
             | also covered what I would consider project management. (I
             | think I would often consider program mangement to be
             | coordinating/managing across multiple projects as part of a
             | broader program of work, but I don't think that was what
             | Google meant by that title.)
        
               | Apocryphon wrote:
               | At Apple, the ubiquitous EPMs are Engineering Program
               | Managers. But yep, I think we're just quibbling over
               | terms that aren't standardized across (or even within)
               | companies, but describe roles that are more or less the
               | same.
        
             | RandallBrown wrote:
             | The distinction between a program, project, and product
             | managers seems to be mostly dependent on the company you
             | work at.
             | 
             | All the various "PMs" at companies I've worked for have
             | done largely the same jobs that are some mix of managing
             | the project and figuring out new features for the product.
        
               | singleshot_ wrote:
               | The difference between ongoing operations, a project, a
               | program, and a portfolio are clearly delineated in the
               | Project Management Book of Knowledge, which is usually
               | foundational knowledge for a project manager. If a person
               | tries to practice project management without knowing this
               | stuff, I'd agree with your use of scare quotes.
        
         | mushufasa wrote:
         | > So the CEO can sit on his hands the whole time the product is
         | developed, but then does reap huge gains.
         | 
         | This sounds off to me. Even if the CEO isn't a technical
         | engineer literally working on the code, they are ultimately
         | accountable for getting engineers and designers to build the
         | right product. Building the right product is massively hard.
         | Usually, it takes several wrong takes to get it right. 90% of
         | startups fail.
         | 
         | When an engineer is hired post-traction, they may not see all
         | the scars and dead bodies of those failed attempts. It may seem
         | easy to manage if the product is already a hit, because when
         | there is true PMF it's hard to mess up.
         | 
         | But that's like those stories about how the military in WW2
         | thought they should be adding armor to the areas of the plane
         | that had holes after sorties. That was totally wrong; the real
         | problem would have been to add the armor to the areas of the
         | plane without holes, because *those planes crashed and were
         | never recovered.* In other words, what "seems easy to sit on
         | the hands" is survivorship bias, and ignores the brutal reality
         | of struggle that any founder will be able to relate with.
         | Assuming that "engineers could run these businesses themselves"
         | indicates a very incomplete understanding of what is involved
         | with actually building and running a business.
        
           | ldjkfkdsjnv wrote:
           | This is how its supposed to work in theory. As a CTO, you can
           | easily end up doing all the work of the CEO, which he gains
           | from. Its only when you go to write the software, that alot
           | of the product decisions get made. This is what the
           | ycombinator video is about.
        
           | KRAKRISMOTT wrote:
           | The CEO is the sales guy. If you have worked in B2B places
           | before, very often the CEO is completely non-technical.
        
             | Apocryphon wrote:
             | Can't the CEO be the product guy?
        
               | mushufasa wrote:
               | Yes. If you're good at product you're typically good at
               | sales. If you're good at sales you may not necessarily be
               | good at product.
               | 
               | Sales is about navigating conversations to match
               | someone's problem to a solution. Product is about
               | navigating conversations to understand problems and
               | figure out what the solution should be in the first
               | place.
        
               | timfsu wrote:
               | Product CEO only works for companies where the product
               | sells itself, which in my experience is only a small
               | fraction of companies
        
               | choppaface wrote:
               | If the product doesn't sell itself, then the founders
               | failed to make something people want. If sales lead the
               | company instead of product, then market-making becomes
               | the company's actual product.
        
             | _jal wrote:
             | That's frequently true, but it really depends. Some CEOs
             | are the HR person, entirely focused on filling roles with
             | people who know how to sell/build/whatever.
             | 
             | I do know one CEO who is "the engineer". They're in a bit
             | of a weird market, and it seems to be working. I rather
             | expect he'll move to a CTO role once they're actually in
             | production, though, when the focus becomes growth.
        
           | liquidpele wrote:
           | > Even if the CEO isn't a technical engineer literally
           | working on the code, they are ultimately accountable for
           | getting engineers and designers to build the right product.
           | 
           | You haven't had to have meetings with a CEO before, have you?
        
             | mushufasa wrote:
             | You've never been a CEO before?
        
               | liquidpele wrote:
               | I'll take that as a "no".
        
         | VirusNewbie wrote:
         | TPM at Amazon is a very high bar, and usually requires a
         | technical background. I have one old coworker who got it, and
         | didn't make it very long, saying it was too challenging.
         | 
         | I've never seen someone on the TPM ladder directly manage SWEs
         | at google. Microsoft is different, the whole place is a shit
         | show.
        
           | ldjkfkdsjnv wrote:
           | The L6 TPM bar at amazon is way below the L6 SDE/SDM bar. Its
           | not even close
        
             | VirusNewbie wrote:
             | If you have first hand experience, that's better than my
             | anecdote so I will defer. I was going off of the job
             | descriptions, which basically made it seem like an L6 TPM
             | needed to be both an L6 SDE _AND_ a PM.
             | 
             | Very possible i'm wrong though.
        
               | liquidpele wrote:
               | TPMs are almost universally fluff positions. The amount
               | they make is absurd for what they do. I will die on this
               | hill.
               | 
               | PMs are often the same, although the position _can_ have
               | value if there 's clear expectations and enough
               | sales/customer complexity to warrant it.
        
               | scarface_74 wrote:
               | I have first hand experience dealing with them from the
               | Professional Services side. Anytime I needed something
               | technical, I would go through back channels to avoid
               | them.
        
         | mytailorisrich wrote:
         | My experience of TPMs in the industry is indeed unfortunately
         | people who were not particularly good at sw dev, and who are
         | not particularly good at project management, either. But they
         | take care of all the charts and annoying stuff and technical
         | managers and directors can hold their hand while they pretend
         | to be know what they are doing by using jargon.
         | 
         | OK, that was harsh. But not always far from the truth!
        
         | nextos wrote:
         | I love this comment because IMHO most organizations that have
         | become dysfunctional host a large number of individuals that
         | have hacked the company ranks the way you describe.
         | 
         | The pattern is identical in other industries and even in
         | academia. Professors are supposed to be technical staff, but in
         | reality most have become middle-managers bossing around
         | scientists much smarter than them (paraphrasing the OP). Plus,
         | they usually claim all credit for any breakthrough.
         | 
         | As a European, I think the US industry is much more innovative
         | because this is less of a problem. It is still an issue, but at
         | least technical people get some recognition.
        
           | bjornsing wrote:
           | If you want to see the extreme, come to Sweden. Here many see
           | soft and hard skills as mutually exclusive. So hard work and
           | understanding the nitty gritty details is extremely _bad_ for
           | your career, in many companies. You can imagine the culture
           | it fosters.
           | 
           | But the situation is improving somewhat. At least that's my
           | impression. Like a drunk that has hit rock bottom we're on
           | our way to recovery. :)
        
         | atleastoptimal wrote:
         | I can't believe the bar is generally lower if it's apparently
         | that easy to get paid 400-500k after a few years. What are the
         | barriers to entry?
        
           | liquidpele wrote:
           | It's not "after a few years", and plenty of people just fail
           | completely at management. It's realistically the same "hack"
           | as "jump around companies to get good raises" - i.e.
           | companies will pay out to fill a position, but not to keep a
           | position filled.
        
         | dilyevsky wrote:
         | That's a nice fantasy but most technically minded folks will
         | quickly discover that political savviness required to pull this
         | off is in fact a skill and the one they generally don't
         | possess. Also, watch the hands:
         | 
         | > 2. Get hired into a higher level than you could in a SWE
         | role.
        
           | ldjkfkdsjnv wrote:
           | Its not a fantasy, this is path represents a huge percentage
           | of managers/higher ups in software
        
             | aleph_minus_one wrote:
             | > Its not a fantasy, this is path represents a huge
             | percentage of managers/higher ups in software
             | 
             | It's also a part of the reason why at least historically
             | there is such an insane hate for managers in hacker
             | culture.
        
             | fatnoah wrote:
             | This was my experience after my startup was acquired. My
             | boss, and my skip level were both former QA folks who'd
             | never done any SWE work. I had more YOE as a SWE AND as a
             | manager than both combined.
        
           | blueboo wrote:
           | I worry this whole comment chain is celebrating a coping
           | mechanism of troglodytic engineering, that the ideal is to
           | shape artisanal code-crystals undisturbed in a cave. We all
           | wish there was a simple meritocracy of crystal-fashioning,
           | with the master diamondsmiths sat at the top. If only, enough
           | said.
           | 
           | The political savviness so scorned by the in-the-trenches
           | coder might actually be communication, capacity for broader
           | context, strategic foresight, emotional intelligence to debug
           | and optimise teams, among the many other skills required to
           | execute a product/project beyond programming. And good leads
           | will pluck coders showing these skills out of the engineering
           | corps and set them on a TPM track.
           | 
           | Perhaps it is only rarely the case. But it seems fair to
           | observe that it is gentler on the ego to cast these rare and
           | hard-earned skills as "playing the game", PM mumbled-jumbo,
           | etc.
           | 
           | At the same time, operators in bad faith tend to deploy just
           | these skills, and a bad experience can incline one to wash
           | their hands of it all and crave the rough diamonds of the
           | cave...
        
             | fjweo wrote:
             | No these teams with these people tend to be totally
             | dysfunctional. It's not the case that they are skilled at
             | producing value and doing important things for the product,
             | just playing the game (often in a very evil way)
        
         | Cyberdogs7 wrote:
         | I feel personally called out, as this was very much my path.
         | However, I did continue to train my engineering skills and
         | would be very embarrassed if any of the senior engineers in my
         | team didn't think I had the same technical skills as them.
        
           | fabianholzer wrote:
           | Quite likely most of them think exactly that, but they are
           | not so stupid as to say it in your face, you are after all in
           | a position to have formal and disciplinary power over them.
        
         | scarface_74 wrote:
         | But then you have to work at Amazon. Been there done that got
         | the T-shirt.
         | 
         | Honestly that's not bad advice though. I did something like you
         | recommended. A recruiter from Amazon Retail reached out to me
         | about applying for an SDE position in mid 2020. I wasn't about
         | to sell my big house in the burbs of Atlanta that I just had
         | built in 2016 to work at Amazon in Seattle "when Covid lifted".
         | Besides I hadn't had to do a coding interview - ever. As an
         | enterprise CRUD developer who knew AWS, had a network and knew
         | how to talk to people.
         | 
         | After I kept talking to her, she suggested I apply for a remote
         | role at AWS ProServe specializing in app dev + cloud. There was
         | no coding interview.
         | 
         | I'm far from naive. I was 46 at the time on my 7th job and new
         | from reputation and second hand experience that eventually
         | Amazon is going to Amazon.
         | 
         | I was well prepared when I got Amazoned.
         | 
         | https://news.ycombinator.com/item?id=37969302
        
         | AmericanChopper wrote:
         | > There's no easy answer, as many engineers do not have the
         | soft skills for the role. But arguably, they could run these
         | businesses themselves.
         | 
         | I like most of this comment, but this I always think this
         | perspective completely misses the point.
         | 
         | No matter how technical your role is, working with other people
         | is always going to be the most important part of your job. No
         | matter how technically talented you are, your ability to
         | deliver value to an organisation is going to be strictly
         | bottlenecked by your ability to work with others.
         | 
         | This is especially true for leadership roles, where success or
         | failure in the job is almost entirely decided by people skills.
         | 
         | You can have a technical founder who understands the product
         | perfectly, and the understands the market perfectly, and has a
         | brilliant strategic vision. But if they can't lead people
         | effectively, if they can't represent the business to the
         | public, if they can't develop trust among the customers, then
         | they have basically none of the skills required to run the
         | business.
        
         | ekidd wrote:
         | > _So the CEO can sit on his hands the whole time the product
         | is developed, but then does reap huge gains._
         | 
         | I think this is almost always false. And I say this as someone
         | who has worked with many startups, and who has been both a lead
         | engineer and a CTO.
         | 
         | I have seen _so many_ startups fail because either:
         | 
         | 1. They cannot talk to customers, or
         | 
         | 2. They cannot close deals.
         | 
         | It is absolutely shocking how many startups have put in 3 years
         | of heroic engineering effort, but still don't even know the
         | _job title_ of the person who would make the actual decision to
         | buy their software.
         | 
         | But if you have a non-technical CEO who can convince 10
         | potential customers to sign a non-binding letter of intent,
         | then you're in the game. Take that a competent investor and
         | they'll _find_ you a CTO.
        
           | raincom wrote:
           | Yes, you have a great point: folks who close deals, who talk
           | to customers, who finds prospects are NOT parasites, even
           | though they can make more than the hard working engineers.
           | The real parasites are elsewhere.
        
         | AmpsterMan wrote:
         | I did this by mistake. Got hired as a QA, transferred to dev in
         | six months. I wouldn't technically qualify for similar roles in
         | my company were I to apply from the outside.
        
         | u89012 wrote:
         | Happened to me. I was that unfortunate CTO for a fintech
         | startup. Unqualified CEO with anger issues but with loads of
         | money waited till past traction and nod from investors, then
         | simply booted me and my team out on some lame pretext, going as
         | far as bad-mouthing 2 years of hard work by the tech team and
         | now the CEO and the board have ghosted and won't return
         | calls/email to pay or honour employment contract terms! Sane
         | advice above, DO NOT accept equity, always go for hard cash,
         | lesson learnt the hard way!
        
         | mattgreenrocks wrote:
         | An IC variant of this I see:
         | 
         | 1. Climb to highest rung that is readily handed out on IC
         | ladder
         | 
         | 2. Agree to take on more leadership/management tasks, or even
         | go full-time. (Impact, amirite)
         | 
         | 3. After a few years: job hop elsewhere, using your combined
         | tech and management experience
         | 
         | 4. Enter at staff/principal, skipping the sometimes brutal
         | process of getting there directly from IC.
         | 
         | Like the OP, this exploits the fact that the highest leverage
         | you have is entering an org
        
           | ryandrake wrote:
           | Number 2 is easier said than done. I'm currently sitting at
           | that terrible spot where I'm at the top of the IC ladder, and
           | need to become a manager and have direct reports in order to
           | continue climbing, but the dreaded chicken and egg problem
           | prevents it: You need management experience to become (or job
           | hop to be) a manager.
           | 
           | I had the same painful conversation with my boss that a lot
           | of us have had: Became the top subject matter expert on my
           | growing team, team grew to the point where my boss needed to
           | insert a few managers under him, pitched myself for it and
           | ultimately he hired outside the team because he needed
           | someone who had already been a manager. This exact thing has
           | happened in my last three companies.
           | 
           | Very few companies actually have pure IC roles that are truly
           | parallel (in comp and prestige) with the people management
           | ladder.
        
             | mattgreenrocks wrote:
             | Yes. I should say sometimes there's a huge time gap between
             | 1 and 2, as you need enough clout to have someone agree to
             | take a chance on you.
             | 
             | Hope your luck changes on this front.
        
         | chiefalchemist wrote:
         | > There's no easy answer, as many engineers do not have the
         | soft skills for the role. But arguably, they could run these
         | businesses themselves.
         | 
         | Can you clarify this? They don't have soft skills? (And perhaps
         | lacking in biz skills, e.g., working understanding of
         | marketing?) But still they can run the company?
         | 
         | My experience has been different. Technology is relatively the
         | easy part. People? On the other hand? People - leading,
         | managing, marketing to them, etc. - is 10x more difficult.
         | Human behavior is a complicated system. It's not something you
         | can throw a couple of engineers at and poof! X weeks later you
         | have a semi-perfect solution.
        
         | CalRobert wrote:
         | Geeze, I just gotta figure this out. Middle aged engineering
         | lead here and definitely not on $400k.
        
         | opportune wrote:
         | Almost every time I run into an incompetent SWE manager they
         | exploited this loophole. For some reason companies keep letting
         | it happen.
        
         | alexawarrior2 wrote:
         | If that's how you want to spend your limited time on earth,
         | more power too you. Sounds like one of Dante's circles of hell
         | to me.
        
         | bowenjin wrote:
         | Great guide. I've seen this career path played out many times
         | on Linkedin.
        
       | satvikpendem wrote:
       | One of the top comments on the YouTube video attached to the
       | article talks about how someone wasted their 20s working as the
       | founding engineer (employee #6 of a 6-person startup) and when
       | the company exited for $100 MM, they only got 100k and are still
       | working at 40 years of age while the other 5, presumably having
       | cofounder-level equity, are retired.
       | 
       | This is the true risk of startups, and, if you're looking to
       | maximize your earnings, it's best to either join a big tech
       | company or start your own startup owning most of the equity,
       | perhaps as a side hustle while you grow it enough to be
       | profitable.
       | 
       | But getting "founding engineer" level equity on the order of 0.5%
       | (before dilution!) seems to basically be a scam, where you're
       | working 2x the amount for lower salaries than the market, all
       | while having some nebulous carrot dangling in front of you for a
       | reward that may never come, most likely, or even if it does, the
       | value is so small as to not make up even on a per-hour basis the
       | amount you spent working at the startup.
        
         | Berone wrote:
         | The path to getting into these founder / c-suite roles is those
         | founding engineer roles in which you can learn how to scale and
         | operate these ventures.
         | 
         | The founding engineer role at 0.5% is not meant to be a role to
         | retire on, but a stepping stone to those bigger roles.
        
           | satvikpendem wrote:
           | Not really, it's better to just start your own startup
           | instead, there is not much need to spend years as a founding
           | engineer before becoming a founder, you might learn some
           | skills but it's nothing you can't learn yourself, as
           | evidenced by the people who are first time founders who did
           | not previously work at a startup. If you get to some scale
           | and get acquired (or even shut down), you can leverage that
           | for future higher positions that a founding employee would
           | not get you.
        
             | Berone wrote:
             | It just depends on if you have the background and talent to
             | warrant that role. I think that is an exceptional case for
             | someone to get funding and support to build a venture
             | without any operating experience.
        
               | lazide wrote:
               | If operating == running an existing similar company, then
               | almost no successful founders I'm aware of had such
               | experience before hand, did they?
        
               | satvikpendem wrote:
               | Most companies that YC and other VCs fund are by first-
               | time founders, mostly those who have not been in other
               | startups. Like the other commenter said, the path to
               | being a founder is actually founding.
        
           | Ancalagon wrote:
           | Except I personally know a number of CTO/co-founders that
           | never served their time that way and went straight from
           | Google/FB/big-tech to CTO..
        
             | Berone wrote:
             | Sure, I didn't mean to imply it's the only path to those
             | seats.
        
           | Seattle3503 wrote:
           | It seems common enough that early engineers are purged for
           | "higher quality talent" from the big companies at some point.
           | Most of the high quality engineers won't join early on
           | because they don't work for startup equity. Once the business
           | is established and salaries are higher those FANG engineers
           | are happy to join.
        
           | ClarityJones wrote:
           | > meant
           | 
           | by whom?
        
             | Berone wrote:
             | The folks designing the compensation plan and explaining
             | the plan to the potential employee. I can't speak to
             | unethical cases in which things are misrepresented.
        
           | compiler-guy wrote:
           | A "Founding Engineer" at 0.5% is an inflated title for
           | "someone who can actually produce a project but is going to
           | get clobbered at exit time."
           | 
           | The title itself is mostly a lie.
        
             | Berone wrote:
             | I agree. What started as a title that signaled the
             | individual was there at the earliest parts of building the
             | venture, it has been abused.
        
           | catlover76 wrote:
           | The path to being a founder is actually founding. One doesn't
           | need to be a "founding engineer" beforehand.
        
           | lazide wrote:
           | Being a better wheel isn't going to put one in the drivers
           | seat - no matter how good of one they are.
           | 
           | That said, if someone is the type who pays attention and
           | learns what is going on, being close enough to see certainly
           | helps.
        
         | mushufasa wrote:
         | While it's hard to comment on a specific situation, in my
         | experience engineers are typically more interested in cash
         | compensation rather than equity, even with less than 10
         | employees. And this is when offering them the option; they just
         | choose the cash most of the time. Meanwhile, the founding team
         | often is just paying themselves stipends for rent. So there's
         | some classic risk tolerance here: if the company fails (which
         | 90% of startups do), the founders have burned all their savings
         | and have skills that are more broad than deep, whereas the
         | employees are better off, and often more hireable given the
         | skills they've developed in their specialization. Also, when
         | things aren't going well for the company, the engineers can put
         | out feelers to leave ship and line up another job, whereas the
         | founders typically have to go down with the ship and shut the
         | entire company down if they are exhausted.
         | 
         | Yes, in the small % of cases the company is very successful,
         | the founders will gain more, but it's disingenuous to not
         | consider the risk.
         | 
         | Startups are not a risk-adjusted way to maximize earning
         | potential for nearly anybody --- not even VCs! VC returns
         | overall typically are less than S&P500.
        
           | nytesky wrote:
           | From digging around, I suspect there is a starting base
           | phenomenon for that risk tolerance.
           | 
           | For example I was watching a documentary and got curious
           | about theglobe founders -- one was the son of Valley business
           | type and the other was the grandson of the founder of Nestle.
           | 
           | Many engineers come from more pedestrian roots, and need
           | money to make rent if the company folds, while the founders
           | can accept "stipend" money because they have cash flow
           | guarantees (probably estate tax avoidant annual gifts) and
           | possible even jobs from family connections.
        
         | dboreham wrote:
         | Wasn't it jwz who first widely pointed this out: startup stock
         | is a lottery ticket. Nobody should take 1/2 wages because their
         | boss gave them a lottery ticket.
        
           | Zelphyr wrote:
           | And then, hilariously, he said, "I just happened to have won
           | that particular lottery."
        
             | pseudalopex wrote:
             | Why is it hilarious?
        
               | neilv wrote:
               | And then his accountant/advisor said something like, "If
               | you'd told me you were going to buy a nightclub, there
               | are easier ways to lose all your money."
        
               | mistrial9 wrote:
               | you know the best way to have a million dollars in the
               | Rock'n Roll world?
               | 
               | A. start with two million !
        
               | Zelphyr wrote:
               | I guess you have to see it first-hand:
               | https://www.youtube.com/watch?v=4Q7FTjhvZ7Y
        
             | andrewflnr wrote:
             | I don't get the hilarity either. Just sounds like a small
             | dose of self-awareness.
        
         | Aurornis wrote:
         | > But getting "founding engineer" level equity on the order of
         | 0.5% (before dilution!) seems to basically be a scam, where
         | you're working 2x the amount for lower salaries than the
         | market,
         | 
         | 0.5% at an early stage with below market compensation, no
         | refreshers with future rounds, negligible comp increase with
         | future rounds, and below-market salary is indeed a scam. A lot
         | of startups are happy to operate this way.
         | 
         | On the other hand, getting 0.5% equity in addition to market
         | rate salary (or adjusted to market rate as soon as funding
         | comes in) with refreshers on each raise to offset dilution and
         | reasonable work life balance can be a very good deal.
         | 
         | I've worked for both types of startups. The first type quickly
         | loses their best talent as they figure out they're getting the
         | short end of the stick. The second type can build a happy
         | founding engineering team that grows with the company and wants
         | to stay for the long term.
         | 
         | Fortunately, the internet has made it harder for companies to
         | get away with the bad deal, below market rate, terrible WLB
         | arrangement that was so common at startups a decade ago. Some
         | people still get trapped by bad deals. Usually when you look at
         | those companies giving bad deals it's a small group of older
         | founders managing a group of early 20s college grads who don't
         | yet know better.
        
           | danielvaughn wrote:
           | Yeah that's wild. I was a founding engineer once, and got 15%
           | via a sweat equity agreement. No way I'd be considered a co-
           | founder for under 1%.
        
             | robervin wrote:
             | I believe the parent comment is using founding engineer to
             | mean early employee (not necessarily first, and
             | differentiated from "founder"). 15% is certainly "founder"
             | levels of equity, but it's all arbitrary.
        
           | pc86 wrote:
           | Serious question: if you're truly being paid a market-rate
           | salary -- e.g. roughly as much as you could make at any other
           | VC-funded enterprise, any FAANG company, etc, not the same
           | $110k/yr you'd make at a bank or consulting firm -- why would
           | you get _any_ equity? The whole point of equity is that you
           | have skin in the game and  "work harder" (whatever that
           | means) to make the company a success. At least in the early
           | days part of that was accepting lower cash compensation in
           | exchange for a piece of the upside. Why, if you're going to
           | treat a founding or near-founding position as a 9-5, 40-hour
           | week, clock-in-clock-out type of position, would you get a
           | piece of the upside compared to just working at a bank or
           | consulting firm?
        
             | z0r wrote:
             | Equity is skin in the game. Why are you implying that a
             | well paid engineer, in both salary and equity, would be
             | treating their start-up role as a 9-5 bank job? At the very
             | least a startup is not as safe a bet as a stable job at a
             | big company like that. With equity they're going to want to
             | work hard to increase the upside of their contributions.
        
             | pdntspa wrote:
             | > Why, if you're going to treat a founding or near-founding
             | position as a 9-5, 40-hour week, clock-in-clock-out type of
             | position, would you get a piece of the upside compared to
             | just working at a bank or consulting firm?
             | 
             | One can be very dedicated on a 9-to-5 schedule. Just
             | because you value WLB doesn't mean you are in a 'clock-in-
             | clock-out' mentality. People have lives outside of work,
             | may be even hobbies. The idea that a startup owns your life
             | needs to die, stat. That is an extremely toxic line of
             | thinking.
        
             | axlee wrote:
             | The point is also to keep people around. Software engineers
             | are notoriously feeble, as they get offers extremely
             | regularly.
        
               | sokoloff wrote:
               | Do you mean "fickle" rather than "feeble"?
        
             | ditonal wrote:
             | Because FAANG pays equity too.
             | 
             | Google will pay a senior engineer 200k base and 250k in
             | liquid stock a year for 450k TC. That stock is also
             | incredibly low risk.
             | 
             | If a startup paying market means 450k cash, absolutely
             | there's no need for equity. But if it means matching the
             | 200k base then obviously you're screwed with no equity. And
             | I'm theory it should be a lot of equity given the much
             | higher risk premium.
        
               | VirusNewbie wrote:
               | According to levels.FYI, Google average for senior
               | engineer is closer to 360k. But your point still stands.
               | 
               | You are getting equity either way, both are likely to
               | appreciate, but one is likely to be more liquid. So
               | you're trading liquidity for a higher return.
        
             | actionfromafar wrote:
             | I'm thinking, so they don't quit on a whim.
        
           | satvikpendem wrote:
           | Generally, startups don't pay market rate, it seems. I've
           | seen offers for $125k - $175k as the base, while bigger tech
           | companies will pay a total compensation of double or even
           | triple that, so the 0.5% needs to make up for that
           | difference. I don't see any startups paying at that "market
           | rate" of big tech, as I've generally seen. Yes, I am focusing
           | on big tech specifically but those that work at startups
           | should be good enough to get into a big tech company anyway.
        
         | brettproctor wrote:
         | These folks just put up a long post trying to weigh the risk v
         | reward at various startup stages.
         | 
         | Mostly summarized into: "Joining at Series C may give you an
         | ideal combination of risk and reward. Series C startups had the
         | highest weighted growth in our analysis, followed by Series B
         | and A."
         | 
         | https://www.joinprospect.com/blog/which-stage-startup
        
           | bllchmbrs wrote:
           | There are 2 problems with the analysis in the article:
           | 
           | 1. They choose startups from 2014-2015. Valuations were (a)
           | more reasonable then and (b) we've just been through one of
           | the biggest bull markets of tech stocks in the past decades.
           | 2. That taking the "Mean Valuation Growth" over that time
           | period is meaningless if (a) there hasn't been a liquidity
           | event and (b) if the mean is weighted by outliers (which it
           | always is).
           | 
           | Portfolio / VC strategy is a bet on power laws. We, as
           | employees, don't have that opportunity. That means we've got
           | to be deliberate about who we join to try to hit a power law
           | outcome.
           | 
           | Am I crazy here?
        
         | a945a9o5u9 wrote:
         | And that is exactly why I left my last company. As person #4 I
         | was offered 1% over four years, an extremely below-market-rate
         | salary, and no benefits. I left after exactly one year and
         | didn't bother to exercise my 0.25%. People #2 and #3 left a
         | little while after that. Person #1 / CEO / CTO / Maker-Of-All-
         | Decisions is still there, somehow, still funded by monthly
         | donations from family members and now crowdfunding.
        
         | eweise wrote:
         | Been working at startups on and off for over 20 years. In total
         | I've spent more money on stock options than I've made from
         | them.
        
           | latchkey wrote:
           | Nailed it.
        
           | saliagato wrote:
           | Care to elaborate?
        
         | ditonal wrote:
         | One thing people need to remember is the world runs on
         | incentives. And on this topic, there is a HUGE incentive to
         | mislead people.
         | 
         | The facts are:
         | 
         | 1) Tech startups usually need a bunch of good engineers
         | 
         | 2) Investors and founders want these engineers for as little
         | money as possible, as almost every owner-labor relationship in
         | history has gone
         | 
         | 3) Stock options have mystique from once-in-a-lifetime
         | companies like Google but are overall very complex financial
         | instruments
         | 
         | 4) Many engineers are a combination of poorly informed about
         | these complexities and easily impressionable to be "sold" that
         | these options are a good idea.
         | 
         | The end result is a massive amount of effort expended to
         | hoodwink engineers on this topic. The existence of the term
         | "founding engineer" is exhibit 1, they are an employee and
         | could simply be called software engineer, the term was invented
         | to add the mystique (and workload) of a founder to what's just
         | a regular employee without founder equity.
         | 
         | Exhibit 2 is this idea that being a founding engineer is a path
         | to being a founder , this gets repeated ad nauseum despite
         | being easily disproven by 5 minutes on linked, a slim
         | percentage of hot startup founders had previously been
         | "founding engineers" . Of course some startup experience might
         | be useful but just as often you're the code monkey hired
         | precisely so that the actual founders have more time to do the
         | founder stuff you're not doing and therefore not learning.
         | 
         | YC is basically a VC firm so it's like taking Exxon Mobiles PR
         | about climate change risk at face value. There's a huge
         | potential for bias. And even by VC firm standards YC has been
         | shown to be exceptionally employee- hostile in their
         | communications to founders and the behavior of their portfolio
         | companies.
         | 
         | Once again, people ask "what would a union do" and once again,
         | here's an answer. It could hire lawyers with a collective
         | budget to review startup option terms and make them less likely
         | to screw over early employees. Because the lawyers that the VCs
         | hire are working to protect the VCs, not you. And the blog
         | posts they publish on employee equity are written to serve
         | their interests, not yours.
        
           | satvikpendem wrote:
           | This is a good article on the ergodicity argument for VCs:
           | https://news.ycombinator.com/item?id=37869760
           | 
           | Basically, VCs optimize for many small bets, ie investing in
           | many, many companies where only one needs to hit it big in
           | order to recoup the investment cost, while startups focus
           | only on their own success, so it's in the VCs' best interest
           | to sell the dream of working on or at a startup, thereby
           | increasing VCs' own success without necessarily materially
           | affecting the success of the startup itself.
        
         | lucb1e wrote:
         | > the YouTube video attached to the article
         | 
         | Which article? The two sentences below the video pointing you
         | to watch the episode, did I miss something?
        
           | satvikpendem wrote:
           | Yes, my mistake, I just meant the page itself when I said
           | "article," not that there is any extra material information
           | besides the couple of sentences.
        
         | jjav wrote:
         | Keep in mind it's not just the percentage, but whether it will
         | be possible to keep any of it.
         | 
         | I've done five startups now and my conclusion is I'll only
         | consider joining a startup at two points:
         | 
         | In the beginning, when the share valuation is less than a
         | penny. The valuation is low, do an early exercise of all shares
         | up front and file an 83b. Now, as you vest, you actually own
         | the shares. So you can leave the company in the future and keep
         | all your so-far vested shares.
         | 
         | Or, late in the startup cycle when the company is already well-
         | known and very clearly on the IPO path.
         | 
         | Anywhere between these points is not worth it. The valuation
         | will be too high to early exercise so may lose everything but
         | the probability of success will be too low to take the risk.
        
         | golergka wrote:
         | For a full picture, how much cash did he get and how much tc
         | was he worth at other, more established companies at the time?
        
           | satvikpendem wrote:
           | They didn't say, you could ask them on the YouTube comment,
           | but it is likely that their TC was below market compensation,
           | by the way they stated their story; if they were really
           | satisfied with their TC, it's likely they wouldn't have made
           | such a comment.
        
       | dauertewigkeit wrote:
       | Industry wide, not even in startups, the people who get screwed
       | the most are the ones working under the hood. I am not even
       | talking about the disparity between SWEs and C-suites. I'm
       | talking within the engineering domain. The closer you are to the
       | application side the more credit you get for the effort, even if
       | it might have only been possible through the hard work of recent
       | under the hood technological advances.
       | 
       | A prime example is deep learning. The people getting all the
       | credit are the AI researchers. Now I am not trying to discredit
       | them. But a huge part of what made the recent training of large
       | models possible are all the other advances. All the dedicated
       | PyTorch/C++/CUDA/MPI code that is written just to be able to
       | scale on a HPC cluster, for example. Those people are handsomely
       | rewarded, but they aren't getting the Chief AI scientist
       | recognition, despite it probably being just as hard if not harder
       | to write all the optimized code to enable and facilitate LLMs in
       | the first place.
       | 
       | Before I got into deep learning I was into numerics. Numerics
       | people get typical SWE salaries, but they aren't getting FANNG
       | level salaries, even though their code is powering the
       | simulations across whole industries that ultimately enable many
       | of them to operate at all.
       | 
       | Now I am sure somebody will debate me on the "getting screwed"
       | part, but it sure feels as if, the ones who use a technical
       | library and build an application on top of it, get the
       | recognition both for their own work and also get part of the
       | recognition that should due-fully be bestowed on the author of
       | the library.
       | 
       | But maybe this is how the entirety of society works, but one
       | should still be conscious of this phenomenon. If we all stand on
       | the shoulders of giants, then maybe we should also name the
       | giants in the acknowledgements section.
        
         | dogman144 wrote:
         | I think this depends on what you view as "getting screwed."
         | 
         | If the under the hood line engineers aren't getting wild
         | compensation for products they built generating wild
         | compensation for the engineers/researchers working on the end
         | product, yes that is a fair point.
         | 
         | If it's these engineers not getting the recognition of Chief AI
         | scientist and so on, that's misguided I think. There is nothing
         | worse than working under a technical SME who doesn't know
         | leadership, and also "product," broadly defined.
         | 
         | I've worked on both sides of the issue and org leadership is a
         | defined skill set the same way optimized code is. Unless the
         | backend engineers display that leadership ability, their
         | closeness to the internals of the technology doesn't justify
         | them running how the technology gets deployed.
         | 
         | It is the same as if you found a startup. During the ideation
         | sessions with whatever VC buys into you, there is 5% discussion
         | of tech, or better yet - checkbox the product mvp works. 95%
         | who are you going to sell this to and have you spoken to them?
         | Different skills.
         | 
         | When tech is a business, the tech knowledge starts to matter
         | less, or is only a portion of the picture. The individuals that
         | grasp that do well, SWEs who ignore this don't IMO.
        
           | dauertewigkeit wrote:
           | I don't think a CUDA engineer, or a researcher working on
           | optimization or distributed computing should get the same
           | recognition as a Chief of anything. But dare I say that
           | writing optimized code to run on clusters is just as hard as
           | coming up with a new deep learning architecture? Actually
           | having done both, it is harder, at least for me.
           | 
           | The authors of "Attention is all you need" got all the
           | recognition. The people who worked on scaling deep learning
           | models to huge clusters got no recognition. But both were
           | just as instrumental to the ultimate success of LLMs.
        
             | dogman144 wrote:
             | Recognition and leadership roles isn't based on hardness of
             | the completed task. Never has been. A good leader will make
             | sure the credit is spread out though, yes. Why:
             | 
             | - Really hard or really easy things can generate the same
             | revenue
             | 
             | - Chief of X can screw up the leadership with hard or easy
             | products if they can't lead and explain to external
             | audiences
             | 
             | - external audiences deal with a million things to be an
             | audience to. It's wishing on a dream that that audience
             | will dig into "well who actually built this" vs moving on
             | to w/e other thing is trying to capture their attention.
             | 
             | Put that together, recognition comes from glueing things
             | and people together successfully, explaining how it works
             | to outside world/clients, and steering the product away
             | from an optimized elegant solution to w/e people will
             | actually use.
             | 
             | Ever since tech stopped being academic/open source and got
             | revenue linked to it, "thems the rules."
             | 
             | Speaking of SWE survival guides, engineers often seem to
             | ignore, hate, or argue this topic always, and meanwhile the
             | smaller set of engineers who get on board with this (ugly,
             | yes) reality tend to do well.
        
         | smokel wrote:
         | Only a few people who were in the right place at the right time
         | and struck AI gold got lucky. Many PhDs have been slaving away
         | and metaphorically died in several harsh AI winters. Nothing to
         | be jealous of.
         | 
         | There are several examples of people who got lucky with
         | infrastructure or more technical engineering, but it is not
         | because of their perceived role or something superficial.
        
           | dauertewigkeit wrote:
           | That is part of the hero narrative that I am also lamenting.
           | 
           | If there are 100 possible research directions and only 1
           | proves successful. The people who travel along the other 99
           | get no recognition, despite expending the same effort and
           | despite their contribution being just as important.
        
             | PH95VuimJjqBqy wrote:
             | why is their contribution important?
             | 
             | Is it your supposition that the only reason the person who
             | went down the successful path did so purely because they
             | watched everyone else fail? That seems highly unfair to the
             | successful person.
        
               | bmitc wrote:
               | Success doesn't always imply the better approach. Also,
               | failure is an important part of science and technology,
               | and success is often driven by insights derived from
               | failures.
        
               | PH95VuimJjqBqy wrote:
               | I have a successful career and my neighbors failures are
               | not related to that in any way.
               | 
               | you'll need to give a more strict definition of the word
               | better before this can be a useful conversation.
        
               | smokel wrote:
               | For one, the successful ones might have learned from the
               | unsuccessful ones that which does not work. This is
               | especially the case if the unsuccessful ones are brave
               | enough to write down that they failed. The latter does
               | not seem to happen much now that most people celebrate
               | only success.
        
             | lazide wrote:
             | Most seeds never germinate, and of those that do, most
             | never amount to much.
             | 
             | Such is life.
        
       | purpleblue wrote:
       | It's funny that YC is posting this video, because as far as I can
       | tell, YC teaches its founders to keep most of the equity for
       | themselves, and dole out as little equity as possible to their
       | employees.
       | 
       | Back during the dotcom days, most employees, from secretaries to
       | engineers, got extremely rich from options when the company
       | IPOed. These days, in order to make a life-changing amount of
       | money at a YC startup as an employee, the company needs to
       | exit/IPO at over $5 billion in order to make about $1 million. I
       | was at a YC company for 4.5 years as an early engineer, and I
       | ended up with less than $100,000 from my options. I would have
       | made 10x that had I taken a FAANG offer with considerably less
       | work and risk.
        
         | AlexErrant wrote:
         | > At YC, we tell our founders to be generous with equity, and
         | even suggest giving 10% to the first 10 employees.
         | 
         | https://www.ycombinator.com/blog/filter-by-equity-at-yc-
         | star....
        
           | satvikpendem wrote:
           | 0.5% - 1% each is also what I've seen, but sadly that is
           | really not enough, especially after rounds of dilution. See
           | my top comment about "founding engineers":
           | https://news.ycombinator.com/item?id=38116759
        
         | timfsu wrote:
         | As a YC founder, YC doesn't teach founders anything when it
         | comes to how to split equity. The economics you're describing
         | is a function of (overly) high valuations in private markets,
         | which leads to equity grants that don't appreciate very much
         | when liquidity happens. This is great for folks that got in
         | early (founders and early investors) and bad for everyone else.
        
           | choppaface wrote:
           | False. YC will connect you with investors and advisors who
           | will do things like perpetuate a 10% employee pool and a 100x
           | to 1000x multiple between CEO and IC compensation. While YC
           | might not give classes about the provenance of these choices,
           | YC founders will inevitably adopt them as they focus towards
           | growth and sales. All YC has to do is be marginally more
           | competitive with other VCs, who will do dumb shit like
           | clawbacks, dilution, Private Equity sales etc.
        
         | choppaface wrote:
         | Based on equity packages and outcomes I've seen, this video is
         | a total sales video from YC to ICs as an attempt to rouse the
         | hiring pipelines for YC companies in the face of this year's
         | layoffs.
         | 
         | I myself had an offer from a YC company years ago that had some
         | layoffs but essentially outperformed and raised a big Series
         | D/E/F this year. Had I gone with the YC company, my equity even
         | in their big raise would have been about $100k. And no
         | guarantee I could have realized any or all of that gain in the
         | raise.
         | 
         | YC could be up-front and give this actual data in the video.
         | Instead it's primarily a specious talk show segment about how
         | YC wants you the IC to think they're on your side.
        
         | feoren wrote:
         | > the company needs to exit/IPO at over $5 billion in order to
         | make about $1 million
         | 
         | I just don't understand who's signing a contract for 0.02%
         | equity in a startup. How does this happen?
        
           | tacker2000 wrote:
           | Dilution, they don't start with 0,02%
        
       | zoogeny wrote:
       | The intro of that video hit hard and hurt. I have literally been
       | in that position where I built the analytics page, which
       | marketing asked for, and I can see the analytics for the
       | analytics and no one has even checked the page. And so I chime in
       | asking if anyone else has noticed that our big product release is
       | not going anywhere and its like crickets. You realize that from
       | your position that you have no ability to hold others
       | accountable.
       | 
       | I mean, if the release had happened and there had been technical
       | issues you would have gotten called out and raked over the coals.
       | But conversely, when the release was technically flawless but the
       | business side tanked then no one is held responsible.
       | 
       | What frustrates me even more is when the non-technical people are
       | acting like they want your input. They are actively soliciting
       | feedback and even talking about empowerment but all of the
       | critical decisions are being made behind closed doors. It is
       | clear they know that any sane and technically competent senior
       | contributor needs agency so they try their best to provide an
       | illusion since they want to keep the actual control. I can even
       | understand it. Their investors demand a prominent VP of sales or
       | marketing and that VP demands their own agency as a requirement
       | to work at the startup. There is only so much control to give out
       | and the technical guy is the one shut out.
       | 
       | One of their points relating to how you know things are working
       | really hit me. If you have fair equity and you have a seat at the
       | table and things are still not working, then maybe you are the
       | problem. But on the other side, if the founders are not giving
       | you a seat at the table even when you are making it clear that
       | you require it then maybe they don't respect you. I believe that
       | it is a mistake to believe that merely working harder will earn
       | that respect.
        
         | fatherzine wrote:
         | "you have no ability to hold others accountable" -- true for
         | all levels of the human stack
        
           | yoyohello13 wrote:
           | This makes no sense. People in power can absolutely hold
           | other's below them accountable, but if you're the low person
           | on the totem pole it becomes much harder.
        
       | rnjailamba wrote:
       | After having worked at four startups, including two as CTO, I
       | have zero remaining equity or financial upside from any of the
       | startup equity. This is the bitter take away, your equity will
       | most likely amount to nothing unless the company is on a clear
       | path to IPO/ acquisition or a promise of share buy back during
       | the time you're at the company. This is a higher bar than simple
       | profitability.
       | 
       | The reason you work at a startup is because you
       | 
       | 1. seek to start a company in the future and want to index on the
       | mistakes of the startup you work at
       | 
       | 2. want to grow in responsibility/ leadership because you're
       | bored at BigTech
       | 
       | 3. want to learn more and apply the learnings, hopefully also
       | experiencing the exhilaration that comes from hockey stick growth
       | 
       | The advice to my younger self would be to ignore startup equity
       | if you're an employee for all practical purposes. The only
       | concrete indicator that equity signals is the trust your founders
       | have in you.
        
         | alexawarrior2 wrote:
         | Amen brother/sister. Was founder, co-founder, early employee,
         | or investor in eleven startups, ten of which went out of
         | business or were bought with no net equity earnings for myself,
         | one of them had a $250m exit from which I netted $130k, after
         | seven years. It's not that retirement-level-net-earnings
         | startups never happen, just that they happen only about 1 out
         | of every 1000 times on average according to my research. The
         | exception being, every additional $1m of net worth you have
         | before you found increases your odds of success, up to around
         | 50% success rate with a net worth over $10m (going towards HNWI
         | territory). So being middle class your startup investments are
         | lottery-level, but if you're already rich they're more of a
         | calculated investment.
         | 
         | tl;dr only capitalists - the existing 1% - have an odds-on shot
         | at startup success
        
           | satvikpendem wrote:
           | > _only capitalists - the existing 1% - have an odds-on shot
           | at startup success_
           | 
           | By the VC definition of "startup," which is not universal.
           | This is why I advocate for bootstrapping on the side until
           | the revenue exceeds your salary. Pieter Levels famously did
           | so and many others are also generating $10k or $20k+ MRR and
           | living well. They can always sell that cashflowing asset for
           | a 5x multiple and enter the HNWI territory, or they can
           | simply keep the company on the backburner while they do other
           | stuff.
        
         | 62951413 wrote:
         | 4. You'd like to work on advanced technology without a "PhD
         | from CMU". Think CockroachDB, Druid/Imply, StarTree/Trino,
         | ClickHouse (Hadoop/Cloudera a long time ago, Spark/Databricks
         | when it was much smaller).
        
       | Joel_Mckay wrote:
       | 1. Acknowledge you are not an expert at everything. Talk with
       | your own Lawyers who read the contracts, Accountants that know
       | local tax events, and former employees before agreeing to
       | anything. "Strategic Truth" often means no one may lie to you
       | knowingly, but this can still cost you during acquisition.
       | Example: IP sold to another stealth company the founder owns for
       | $10, so what is that 7% share/option worth again. That's right...
       | you got nothing... saw several people get conned this way.
       | 
       | 2. Avoid accumulating legal encumbrances at large firms... overly
       | broad NDAs, contracts, and Patent/Copyright obligations can get
       | nasty. You may be signing things long after you leave a firm for
       | zero pay, get fired to claw away equity 2 months before IPO after
       | a 10 year career, or incur dozens of term revisions over years
       | slowly bleeding off contract value. In general, many countries
       | also interpret the identical contract differently depending where
       | it was signed. Example: In Canada anything you build while
       | working at a firm can be claimed by said firm unless explicitly
       | excluded in your contract, and in the USA it is generally
       | implicit that any IP unrelated to company operations is your own.
       | Most employees will roll over like a dead wale, as they likely
       | don't have enough capital to fight a legal battle. One may think
       | they know better as they ignore #1, but they are provably wrong.
       | 
       | 3. Avoid predatory VCs if possible. Ask yourself what these
       | people actually bring to your firm, if they think you are
       | gullible enough to table personal assets, or if a one time top up
       | was worth 34% of your firm. If it is just working capital from a
       | douche in a cheap suite... than seriously reconsider your growth
       | plan. Example: You are small and thirsty... and never saw what
       | share dilution does to founders. Again, talk with your own
       | legal/finance people before agreeing to anything.
       | 
       | 4. Make sure someone doesn't swap paper stacks on you before
       | signing, or give you a old unedited "wish-list" version as a
       | copy. Professional cons span all professions, know card tricks,
       | and people still do ethically dubious things when relatively
       | small sums are involved.
       | 
       | 5. Everything is always pleasant in the beginning, but if the
       | legal paperwork is sloppy... things can get very ugly later. Part
       | of being honest and candid up front... is putting into writing
       | what peoples expected obligations are to each other and the firm.
       | Example: Large rapid revenue growth has torn friends and families
       | apart... as even a $100m can drive some people to recreate a
       | history that never actually happened.
       | 
       | 6. Most techs at Startups have 6 jobs, and being smug ain't one
       | of them. Some advice for business ops.. stay in your lane, as you
       | are also not as mission critical as people may have suggested.
       | 
       | 7. YMMV, ask several random people... each bring differing
       | perspectives. Everyone I respect initially disagrees with my
       | opinions a first... can take a few years to reach consensus for
       | the truly smart.
       | 
       | Have a wonderful day, and build something awesome =)
        
       | neilv wrote:
       | This video format is a way to reach some people, though it's like
       | a sales pitch, and not as "linkable" and clearly prescriptive as
       | it could be.
       | 
       | Ideally, there's a canonical YC bible that everyone knows about
       | and consults, whether or not doing YC. Which says things like
       | "equal equity" for the founders, what's the current best thinking
       | on deals should be for founding engineers, early hires, interns,
       | etc.
       | 
       | Avoid people having to piece together and reconcile conflicting
       | information from various other materials and messaging, from YC
       | and elsewhere.
       | 
       | It could become accepted fair and reasonable practices, if it
       | hits those well. Which could break with some things YC has done
       | in the past, then reconsidered. Maybe it could have such a ring
       | of truth that people accept it despite YC's potential
       | biases/conflicts.
       | 
       | Somewhat like we go to levels.fyi to see what to expect from a
       | FAANG, we could go to the YC bible to see what what to expect
       | from a startup (or to do in a startup that we found).
       | 
       | (I'm thinking of YC for this, since they have the influence, and
       | considerable track record of earning trust.)
        
       | focom wrote:
       | interesting
        
       | paxys wrote:
       | I have seen so many of their examples happen first hand in the
       | industry.
       | 
       | - Lead engineer works 100 hour weeks to keep the company running
       | for a below-market salary and 0.05% equity while the founders and
       | product/sales leads constantly sell shares on the secondary
       | market, buy fancy toys and travel the world.
       | 
       | - Technical cofounder gets a 3% equity because the "business guy"
       | came up with the idea and deserves the other 97%.
       | 
       | - Early engineers are offered seemingly good equity but end up
       | with lower class shares that are first to be diluted away, and an
       | exit below some magic number thought up by founders/VCs earns
       | them nothing because preferred shares get first dibs.
       | 
       | The startup game is probably not right for you as a software
       | engineer if you don't have a "type A" personality and aren't
       | willing to have uncomfortable conversations and fight to get your
       | fair share. Otherwise you are just a resource to be exploited.
        
         | yu3zhou4 wrote:
         | Thx, I just learned about Type A / Type B thanks to you
         | mentioning this
        
           | cutemonster wrote:
           | Maybe you'd find the Big Five personality model interesting
           | as well (if you haven't seen), in particular assertiveness vs
           | agreeableness
        
             | yu3zhou4 wrote:
             | Thanks. I have some experience with Big Five and MBTI, but
             | I'm not satisfied with them since they are too general in
             | what they describe and also they're not scientific enough
             | imho. I'd be happy to see more rigorous research in this
             | area because it could be both useful for self-development
             | and it sometimes might help to understand oneself as well.
             | And it's also fun to do these assessments :p
             | 
             | I'm curious of your take on these tests
        
         | deely3 wrote:
         | I don't know.. should car driver, or cleaner, or repair man get
         | the same equity as founders or top managers? Does work as
         | software developer really different from maintenance and repair
         | guy that (sadly) easy replacable?
        
           | satvikpendem wrote:
           | You get what you negotiate. That's why actors and writers
           | have been getting royalties and residuals on their works for
           | decades now. Only now with the rise of streaming platforms
           | and AI content generation are they being forced to accept
           | weaker terms.
        
             | deely3 wrote:
             | Sure. Do you agree that software developers become modern
             | repairman?
        
       | bjornsing wrote:
       | I don't think I've ever seen two people laugh so much over such a
       | sad topic...
       | 
       | Also, I think it's a mistake to talk about exploitation and blame
       | when your startup is not working. Honestly, most startups don't
       | work out and it's not really anybody's fault. It's kind of the
       | default.
        
         | tmarsden wrote:
         | Injecting humor into a dark or sad situation is very common.
         | It's a way to lighten the mood a bit when the topic is
         | difficult. People joke about death for example and that's a
         | much more serious topic than a startup cap table.
        
           | bjornsing wrote:
           | I'm all for some black humor. But this felt very "forced" to
           | me.
        
       | sergiotapia wrote:
       | Whatever you do, find someone who has walked the walk and been
       | and ASK FOR HELP. ASK FOR GUIDANCE. ASK MULTIPLE PEOPLE. They are
       | 99% more than happy to help! DON'T ASSUME ANYTHING!
       | 
       | Let me put this again since it's so important: IN BUSINESS DON'T
       | ASSUME ANYTHING.
        
       | blmayer wrote:
       | I wish I had seen this 5 years ago, just before being one
       | "founding engineer". Wonderful talk, thanks for posting this.
        
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