[HN Gopher] Y Combinator Compensation Numbers
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       Y Combinator Compensation Numbers
        
       Does the compensation listed on YC jobs include stock converted to
       cash?  For example, Retool
       (https://www.ycombinator.com/companies/retool) claims to be paying
       $600k to someone with 6 years experience. I find this hard to
       believe.
        
       Author : flerovium
       Score  : 37 points
       Date   : 2024-01-05 20:55 UTC (2 hours ago)
        
       | philip1209 wrote:
       | For late-stage startups like this, RSUs are common instead of
       | options. Because stock is issued rather than purchased (like an
       | option), I don't think this is dishonest. (If a company valuation
       | stays flat, stock options are worthless - but RSUs have value).
       | 
       | Either way: A thing to keep an eye out for is startups that
       | describe the compensation value of stock using the preferred
       | stock price, but then issue you common stock. I've personally
       | seen one late-stage YC company doing this - you sign the offer
       | letter with $Xk in stock, then the paperwork shows up later with
       | $(X/4)k in the grant.
       | 
       | If a late-stage startup is including stock-based compensation in
       | this number, I think it's likely they are pricing the stock
       | inconsistent with its class in the 409a valuation. Keep an eye
       | out for this - I think it's a common and dishonest way to boost
       | perceived compensation.
        
         | zachthewf wrote:
         | You are right, but using the 409a pricing would not really be
         | honest either. (In the sense that the 409a is basically "as low
         | as we could reasonably value this stock" in order to keep the
         | strike prices low.)
        
         | milkshakes wrote:
         | If anything, RSU compensation is worse than options because of
         | the tax implications. With options you have the option of
         | paying the tax before the appreciation of the equity. With
         | RSUs, you pay at liquidity.
        
       | zffr wrote:
       | Where do you see the $600k figure?
        
       | AnotherGoodName wrote:
       | It probably is accurate for someone with stock grants from a
       | while ago vesting now. For new hires I'd lower that expectation
       | though.
        
       | ChrisArchitect wrote:
       | Ask HN:
        
       | anotherhue wrote:
       | Remember that unless there's a market for those shares, they are
       | effectively worthless. Check places like equityzen to see.
        
       | hiddencost wrote:
       | Keep in mind that the law only requires salary to be listed.
       | Large companies typically only list salary, because it helps them
       | hide the true compensation numbers.
        
         | zerr wrote:
         | Why don't they adjust the law so the total comp is also
         | required to be listed?
        
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       (page generated 2024-01-05 23:00 UTC)