Issues around accepting salary plus stock options in job offer


I've been offered a job within a new SaaS startup. I'd be the first technical hire. They've offered to match my current salary and give me 2.5% stock options. Or I take a couple of £K extra with no stock options.

Is there anything I should take into account when making my decision? I am a noob when it comes to stocks and shares!

Jobs Stock Options Shares

asked Apr 11 '13 at 03:05
129 points

1 Answer


NO wonder a dev is a noob in shares and stocks. Let me clarify it.

Share is nothing but a document says you own a piece of a individual company based on their capital and net value.(like you own shares of google's Search market)

Stock is same as a share, for a group of companies.(Like you own Google's stock)

Shares and stocks are like owning the company's assets. 2.5% stocks in a startup mean you own 2.5% of the company's assets(including movable, immovable).

Before making your decision, think and analyse the options.

Ignore Stocks 1.What is the hike in salary given ? is it worthy to shift the current company ?

2.What is this new company's end product ? What's their goal in next 5 years ?

3.Do you think think this new company will grow up with decent profit every year ?

4.When the company was started ? or the founders involved ? Partners ? how do they behave and react to employees or other scenarios ? are they friends ? will they break partnership in future ?

5.Breaking partnership , a foolish decision made in a public company may affect its share value very much.

If you think this company has great ideas and will end up in massive success, go for stocks. if not, just like another noob startup and may not work itself to profits go on with increased salary.

Why stocks The current offer of 2.5% may value few hundred $ now, but after several years it may even climb to millions based on the company's products and efficient building model.

Why "No Stocks" You may think this company has week standards and building model, which may not continue to grow up or they cannot manage to meet profits this competitive market, go on with salary. so that you need not to worry about the company's profit from a employee's view.

Shares and stocks are like snake pit. It can go up and down unexpectedly can make you worry and put you in depression. Think twice and taking calculated risk isn't bad at all.

answered Apr 12 '13 at 15:14
187 points
  • thanks a lot of useful info here – Iamjonesy 7 years ago
  • no problem :) . – Codebrain 7 years ago

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