Because if the owner has capital he’ll keep all the profits and pay you as little cash as possible. Startups are usually run by younger people with not as much cash so they have to offer options to get people to work for them.
I can understand why an owner wouldn’t want to give away small parts of their company. What I don’t understand is why some people are willing to work as if they were part-owners when they’re just on salary. In a lot of start ups, the amount of extra effort people put in when they get options means the options easily pay for themselves.
Well, i enjoy data analytics for one so it doesn’t matter how much you pay me or don’t, when I do it, i do it to the best of my ability. But second, yeah id rather just take the cash salary and invest it in a sp500 index. Especially if it’s a startup, nine times out of ten those options are just worthless, like paying your employees in lottery tickets. For every google story there are a thousand startups that just die in two years.
Because if the owner has capital he’ll keep all the profits and pay you as little cash as possible. Startups are usually run by younger people with not as much cash so they have to offer options to get people to work for them.
I can understand why an owner wouldn’t want to give away small parts of their company. What I don’t understand is why some people are willing to work as if they were part-owners when they’re just on salary. In a lot of start ups, the amount of extra effort people put in when they get options means the options easily pay for themselves.
Well, i enjoy data analytics for one so it doesn’t matter how much you pay me or don’t, when I do it, i do it to the best of my ability. But second, yeah id rather just take the cash salary and invest it in a sp500 index. Especially if it’s a startup, nine times out of ten those options are just worthless, like paying your employees in lottery tickets. For every google story there are a thousand startups that just die in two years.