Ask HN: Do most software engineers get equity (RSUs or stock)?
Is this a common thing? I keep hearing stories about people from TeamBlind or even here making a lot of money from the RSUs issued to them. What % of engineers do you think get issued stock or RSUs when they join a company?
2 comments
Having spent over 8 years in the startup industry, I can say that the use of RSUs and stocks as a form of compensation really hinges on where a startup is in its journey.
In the early stages, when cash flow is tight, startups often use RSUs and stocks to sweeten the compensation package. They paint a picture of future stock value growth, supplementing the limited cash component to attract talent with higher overall packages. Conversely, late-stage companies tend to tie stock provisions more closely to business outcomes. Cash compensation is on par with industry standards, and stocks become an additional incentive, linked to an engineer's performance. For mid-stage companies, striking the right balance is crucial. Their stock allocation is typically constrained by team size and growth stage considerations along with availability of capital.
In the early stages, when cash flow is tight, startups often use RSUs and stocks to sweeten the compensation package. They paint a picture of future stock value growth, supplementing the limited cash component to attract talent with higher overall packages. Conversely, late-stage companies tend to tie stock provisions more closely to business outcomes. Cash compensation is on par with industry standards, and stocks become an additional incentive, linked to an engineer's performance. For mid-stage companies, striking the right balance is crucial. Their stock allocation is typically constrained by team size and growth stage considerations along with availability of capital.
Recently left a company where equity was a substantial portion of my income. Interviewed with 6 companies who all offered equity. 2 already public and 3 with plans to IPO soon. I think all listed equity/rsu/options/etc in the job description/listing.