Why startup equity can feel like a scam—and how companies can fix it

Why startup equity can feel like a scam—and how companies can fix it

Startup compensation packages include equity—in the form of stock options—to give employees ownership in the company they’re building. It also creates an incentive to reward all for their hard work and align company growth objectives. If all goes well, the company thrives and employees experience a life-changing financial windfall as a result. But it’s not that simple and, unfortunately, startup employees don’t often reap the benefits they deserve. We believe companies have a responsibility to step up and educate their employees to help their team avoid common equity pitfalls. Equity gets more expensive over time Employees join a startup out of their personal drive to build anew and make great impact through their work. In many cases, they take a salary cut in favor of receiving stock options in the …
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