Notes on Employee Compensation at Startups
Our Guest: Sanj Sanampudi, CEO & Founder of Concert Finance
We always love talking with Sanj. He’s an expert on employee compensation - and, we'd argue, anything in the bucket of pricing theory. When we talk, he always strikes the right balance of philosophical and actionable insights. You’ll get the point after you read the takeaways below. You can watch the full talk here.
#1 Position Equity Honestly.
Don’t oversell it. Tell candidates "We're giving you a lottery ticket and we think we're going to win the lottery. We think we're doing the right things. We think that we've chosen the right numbers."
Employees should understand that equity is nominal and it isn't readily convertible to cash. It doesn't have an open market value. It is not the thing that is going to help you focus and do your work better.
Founders tend to position equity incorrectly to their employees.
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