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Is it normal to always expect equity when working at a startup? [closed]
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I've seen an organization that claimed to be a 'startup' and they expected their employees to work 60+ hour weeks. The salaries are pretty weak and no one has been offered equity yet. There have only been vague promises of "it will all be worth it in the end."
Isn't it usually standard for early startup employees to have some form of equity? Seems unreasonable to me for a company to ask so much from their employees without at least trying to guarantee some form of extra compensation.
Edit: To be clear...
I'm just trying to understand if there is a standard practice when it comes to equity in startups.
Either:
- It is normal and expected to get equity starting out
- It is NOT normal and expected to get equity
- There is no standard or expectation.
Thanks in advance.
startup equity
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
closed as off-topic by IDrinkandIKnowThings, Vietnhi Phuvan, Jim G., gnat, JB King Jun 30 '14 at 7:18
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – IDrinkandIKnowThings, gnat, JB King
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I've seen an organization that claimed to be a 'startup' and they expected their employees to work 60+ hour weeks. The salaries are pretty weak and no one has been offered equity yet. There have only been vague promises of "it will all be worth it in the end."
Isn't it usually standard for early startup employees to have some form of equity? Seems unreasonable to me for a company to ask so much from their employees without at least trying to guarantee some form of extra compensation.
Edit: To be clear...
I'm just trying to understand if there is a standard practice when it comes to equity in startups.
Either:
- It is normal and expected to get equity starting out
- It is NOT normal and expected to get equity
- There is no standard or expectation.
Thanks in advance.
startup equity
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
closed as off-topic by IDrinkandIKnowThings, Vietnhi Phuvan, Jim G., gnat, JB King Jun 30 '14 at 7:18
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – IDrinkandIKnowThings, gnat, JB King
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22
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up vote
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down vote
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up vote
0
down vote
favorite
I've seen an organization that claimed to be a 'startup' and they expected their employees to work 60+ hour weeks. The salaries are pretty weak and no one has been offered equity yet. There have only been vague promises of "it will all be worth it in the end."
Isn't it usually standard for early startup employees to have some form of equity? Seems unreasonable to me for a company to ask so much from their employees without at least trying to guarantee some form of extra compensation.
Edit: To be clear...
I'm just trying to understand if there is a standard practice when it comes to equity in startups.
Either:
- It is normal and expected to get equity starting out
- It is NOT normal and expected to get equity
- There is no standard or expectation.
Thanks in advance.
startup equity
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
I've seen an organization that claimed to be a 'startup' and they expected their employees to work 60+ hour weeks. The salaries are pretty weak and no one has been offered equity yet. There have only been vague promises of "it will all be worth it in the end."
Isn't it usually standard for early startup employees to have some form of equity? Seems unreasonable to me for a company to ask so much from their employees without at least trying to guarantee some form of extra compensation.
Edit: To be clear...
I'm just trying to understand if there is a standard practice when it comes to equity in startups.
Either:
- It is normal and expected to get equity starting out
- It is NOT normal and expected to get equity
- There is no standard or expectation.
Thanks in advance.
startup equity
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
edited Jun 29 '14 at 23:40
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
asked Jun 29 '14 at 23:23
Tim Snyder
65311015
65311015
closed as off-topic by IDrinkandIKnowThings, Vietnhi Phuvan, Jim G., gnat, JB King Jun 30 '14 at 7:18
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – IDrinkandIKnowThings, gnat, JB King
closed as off-topic by IDrinkandIKnowThings, Vietnhi Phuvan, Jim G., gnat, JB King Jun 30 '14 at 7:18
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – IDrinkandIKnowThings, gnat, JB King
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22
add a comment |Â
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22
add a comment |Â
2 Answers
2
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oldest
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up vote
5
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accepted
This is a major "It Depends." A startup is a startup however its owners decide to run it.
Startups often promise equity only to the folks who were involved in the very start of the company. Later employees, who are taking less risk, may or may not be offered any equity up front and may or may not be gifted with, or be able to earn, equity as their employment with the company continues.
If you don't like what you're being offered, you shouldn't take the job. If there's something you consider essential, get it in writing or go elsewhere.
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
add a comment |Â
up vote
2
down vote
The hard reality is that "there are no rules." And this is doubly more for a start-up.
Generally, your own background will give you the leverage to demand equity, or overtime pay, or etc.
But by the inherent nature of a start-up(i.e high risk and no long-term guarantees), you simply work with what you have. You have to decide if you're willing to wait-it out. And management will have to decide about compensation.
answered Jun 30 '14 at 0:10
Adel
3,571104180
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
5
down vote
accepted
This is a major "It Depends." A startup is a startup however its owners decide to run it.
Startups often promise equity only to the folks who were involved in the very start of the company. Later employees, who are taking less risk, may or may not be offered any equity up front and may or may not be gifted with, or be able to earn, equity as their employment with the company continues.
If you don't like what you're being offered, you shouldn't take the job. If there's something you consider essential, get it in writing or go elsewhere.
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
add a comment |Â
up vote
5
down vote
accepted
This is a major "It Depends." A startup is a startup however its owners decide to run it.
Startups often promise equity only to the folks who were involved in the very start of the company. Later employees, who are taking less risk, may or may not be offered any equity up front and may or may not be gifted with, or be able to earn, equity as their employment with the company continues.
If you don't like what you're being offered, you shouldn't take the job. If there's something you consider essential, get it in writing or go elsewhere.
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
add a comment |Â
up vote
5
down vote
accepted
up vote
5
down vote
accepted
This is a major "It Depends." A startup is a startup however its owners decide to run it.
Startups often promise equity only to the folks who were involved in the very start of the company. Later employees, who are taking less risk, may or may not be offered any equity up front and may or may not be gifted with, or be able to earn, equity as their employment with the company continues.
If you don't like what you're being offered, you shouldn't take the job. If there's something you consider essential, get it in writing or go elsewhere.
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
This is a major "It Depends." A startup is a startup however its owners decide to run it.
Startups often promise equity only to the folks who were involved in the very start of the company. Later employees, who are taking less risk, may or may not be offered any equity up front and may or may not be gifted with, or be able to earn, equity as their employment with the company continues.
If you don't like what you're being offered, you shouldn't take the job. If there's something you consider essential, get it in writing or go elsewhere.
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
answered Jun 29 '14 at 23:43
keshlam
41.5k1267144
41.5k1267144
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
add a comment |Â
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
5
5
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
Last paragraph is the key. If they're offering a subpar salary, no equity, and long hours.. move along, nothing to see here. Remembering that even if you've got equity written into your contract, you need to consider that there's a good chance it will ultimately be worthless. A vague promise is even more likely to be worthless.
– Carson63000
Jun 30 '14 at 1:31
add a comment |Â
up vote
2
down vote
The hard reality is that "there are no rules." And this is doubly more for a start-up.
Generally, your own background will give you the leverage to demand equity, or overtime pay, or etc.
But by the inherent nature of a start-up(i.e high risk and no long-term guarantees), you simply work with what you have. You have to decide if you're willing to wait-it out. And management will have to decide about compensation.
answered Jun 30 '14 at 0:10
Adel
3,571104180
add a comment |Â
up vote
2
down vote
The hard reality is that "there are no rules." And this is doubly more for a start-up.
Generally, your own background will give you the leverage to demand equity, or overtime pay, or etc.
But by the inherent nature of a start-up(i.e high risk and no long-term guarantees), you simply work with what you have. You have to decide if you're willing to wait-it out. And management will have to decide about compensation.
answered Jun 30 '14 at 0:10
Adel
3,571104180
add a comment |Â
up vote
2
down vote
up vote
2
down vote
The hard reality is that "there are no rules." And this is doubly more for a start-up.
Generally, your own background will give you the leverage to demand equity, or overtime pay, or etc.
But by the inherent nature of a start-up(i.e high risk and no long-term guarantees), you simply work with what you have. You have to decide if you're willing to wait-it out. And management will have to decide about compensation.
answered Jun 30 '14 at 0:10
Adel
3,571104180
The hard reality is that "there are no rules." And this is doubly more for a start-up.
Generally, your own background will give you the leverage to demand equity, or overtime pay, or etc.
But by the inherent nature of a start-up(i.e high risk and no long-term guarantees), you simply work with what you have. You have to decide if you're willing to wait-it out. And management will have to decide about compensation.
answered Jun 30 '14 at 0:10
Adel
3,571104180
answered Jun 30 '14 at 0:10
Adel
3,571104180
answered Jun 30 '14 at 0:10
Adel
3,571104180
answered Jun 30 '14 at 0:10
Adel
3,571104180
3,571104180
add a comment |Â
add a comment |Â
By equity, we mean stock - correct? or is there bonus involved?
– Adel
Jun 30 '14 at 0:14
Yes I would advise anyone joining a start-up to have some equity agreement in place. That doesn't mean you get equity from day one, but there's a plan in place as to when you will receive equity.
– TheMathemagician
Apr 15 '16 at 8:22