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Out of context: Reply #72184

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  • pedromendez1

    Looking for a little advice around being offered shares as part of a job offer, if anyone has experience.

    Im in the final round of talks with two tech companies about new roles, both pretty exciting. :)

    Role 1 - Higher salary, good bonus, healthcare, dental, pension, no shares.

    Role 2 - Lower salary, no benefits, 2500 company shares.

    The company offering shares have been though 2 rounds of funding and are planning on going to IPO next year. I really know nothing about all this shares / IPO stuff - its totally new to me. Is there a big opportunity to make some cash here with the shares? Sounds like a bit of a gamble but might be worth it. Any advice from anyone that has been offered shares as part of a sign on package?

    pedromendez 1Permalink
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    • share options they offer you HAVE to buy in the end. take that into account. also i would advice against taking options, from my experience.renderedred
    • There is a big opportunity to make a lot of money with an IPO ... BUT, there may be conditions on when you are allowed to cash out those shares (sell).monospaced
    • If they offer shares, they probably have to offer some sort of prospectus on how they expect the business to perform in the future, after IPO.monospaced
    • ^i had a few IPOs dangled in front of me before the companies went bust. be careful!renderedred
    • Ok cool, good to know. It sounds like a bit of a risk, could be a big payout or big loss... cheers for the infopedromendez
    • BE CAREFUL: https://www.forbes.c…
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    • Make a calculated, honest estimate about what those 2500 shares will be worth when you leave and the likelihood that you will be able to sell them.
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    • Then, add up what Role 1 is really paying you (incl benefits) and if it looks to be about the same ballpark, then the answer is to take Role 1.
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    • No benefits plus shares is a big red flag. I would take the extra money and buy whatever shares in any company I want, rather than being locked in to my job.
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    • WTF is "dental"?

      Can't have an issue if you never go to the dentist. *taps brain*      ideaist
    • Cheers nb, great points - being locked into a role for potentially worthless shares is a stupid move. Role 1 it is then, I think!pedromendez
    • @pedromendez you will get options to buy those shares later.
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    • But, you never know!monospaced
    • I would never take a gig that has no benefits personally. Whatever you decide, think of what's best in the long term.zarkonite
    • I don't know if someone's already brought this up but it depends on the type of share you receive. It's worth the few bucks to chat with a lawyer on this withben_
    • your agreement in hand. It can go either way and sometimes vesting can be a lot harder and more expensive than you expect.ben_
    • I know two people who were at shopify before their IPO, both have the same amount of shares but different classes. One will never have to work again, the otherben_
    • wasn't quite as lucky.ben_
    • Shares are a perk to keep you employed. Their value is zeromonNom
    • ...in today's dollars. Just a lottery ticket and a carrot to keep you around. Many companies that want to IPO fail to actually trade.monNom
    • good friend of mine was at a company that had something similar... made about 700k when the company got bought out...exador1
    • ...on the public markets. Lack of interest from banks, market conditions, etc. Many companies that DO ipo don't immediately trade higher. A lot trade lower.monNom
    • an IPO is essentially an opportunity for the early insiders to cash out to someone else. As an employee, you are unlikely to be rewarded the same as a VC.monNom
    • Better to take the higher salary and lump the difference into a basket of stocks you think might do well, IMO. A bird in the hand, as they say.monNom
    • Unless the company is Facebook and you’re David Choe i’d say take the higher salaryscarabin
    • Role 1, then buy shares in company from role 2 when they IPO.shapesalad
    • And before that buy bitcoin, or use trality to trade for you.shapesalad
    • Done it once. I split the difference and took the slightly higher $ & less shares. I didn't even last long enough to excersise my options which u do buy btw.shellie
    • Thanks a lot for all the advice everyone, really helpful and appreciated. I've accepted Role 1. Woop!pedromendez
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