Be careful with "Stock options are worthless" as advice. This is approximately true of randomly selected seed stage companies but caveat:
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you also you have to consider liquidity. If a company has sure thing value X but the stock isnt liquid, is it still worth X to you?
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Of course not, but I occasionally speak to engineers who discount X to 0, which can result in Certifiably Poor Life Choices.
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They are worthless until they're not.
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And significant compensation at many established companies, though in that case unlikely to be worth multi-millions
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very true. Though it's still gambling. I'd rather have a 401k any day (after getting burned on stock options)
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getting burned *multiple times*
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Time to IPO is getting long enough that even pretty sure things can be worthless if one lacks the cash to exercise said options
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Stock option regulation that allows extended exercise windows would change my option valuation by a whole lot.
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salary: compensation, equity: incentive. If you look at it this way it all makes sense.
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Yeah. E.g. options at a post-IPO company are just a completely different animal than illiquid non-public options.
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