Thisarticlewas originally published on .cult byMikaella C..cultis a Berlin-based community platform for developers.
Are they basically a guarantee for fistfuls of cash to come?
On the other hand, do they make it harder to argue your way into a pay bump?
Should you be expecting more shares with every new promotion?
(More on vesting later.)
), this will give you a pretty reliable estimation of the shares exact monetary value.
But most startups, and especially early-stage startups, will not be able to give you this information.
The shares could skyrocket one day maybe youre working for the next Apple!
But its much more likely that the shares will never be worth much at all.
So dont hang your hat on a hope: the salary is your actual guaranteed income.
Sometimes vesting happens on a regular schedule (i.e.
monthly) or it might be tied to performance milestones.
For example, one common setup is monthly vesting over four years with a one-year cliff.
after nine months), youll lose all of your equity.
Thats why its important to see shares as a long-term investment.
Will my shares affect my future raises?
Should I get more shares as I rise in the company?
If you enjoy and are motivated by the shares you hold in your startup, thats great!
And theres certainly room to negotiate for more equity as you progress in your company.
However, you should be aware that timing is an important consideration for receiving more equity.
So are my shares worth it?
This is something only it’s possible for you to decide.
In short, the problem were solving is that $1 today is worth more than $1 tomorrow.
But of course, your shares might pay off.
Or they might give you a greater sense of motivation, investment and camaraderie with your company.
Or they might pay for a nice birthday present for your mum.
Will it provide a boost to yourcareer?
Will you be working closely with the leadership team?
Will you meet the right people?
And finally, never be afraid to seek out a financial adviser.
Story by.cult
.cult by Honeypot is a Berlin-based community platform for developers.
