from Hacker News

1% of Nothing is Nothing. Why offer equity in compensation packages?

by gozmike on 8/29/16, 3:37 PM with 3 comments

• by hardcandy on 8/29/16, 6:07 PM

  Modern day Silicon Valley is built on somewhat of a gold rush mentality. Why do you think people move out here and put up with much of the locally curated insanity? Because they think they have a chance to strike it rich. Maybe even really, really rich. And they're right; they probably have a better chance here than anywhere else in the world. Startup equity is what keeps people plugged into this particular Matrix. I love Silicon Valley but I recognize it for what it is.

• by Apocryphon on 8/29/16, 5:59 PM

  Maybe, much like employers offering medical benefits as a way to compete on compensation with each other, it's a differentiator that used to make sense at one point but has since spiraled out of control.

• by jomamaxx on 8/29/16, 8:41 PM

  Actually, you can calculate the value of an equity packages, since the 1980's we've been able to intelligently price options (see: Black-Scholes) - but it's a matter of being able to wrap a good probability distribution around future outcomes.

  I suggest that the current packages are roughly reasonable. If anything, what staffers need to do is understand them a little better.