Re:Atlassian gets IPO share price of $27
by meric on Thursday December 10, 2015 @09:40PM
(#10715168)
In Atlassian's case the salaries of founders probably add up to around $3m, which is insignificant next to the $4+b value of their shares.
Also, high salaries for founders is an issue only when the founders did not fund their own business.
You're right, in a startup, funded by VC, that pays the founders significantly more salary than their employees, is a lot less equitable compared to a bootstrapped startup funded by the founders' credit cards, or a VC funded startup that pays its founders little. In the latter cases, the founders take a lot more risk, and so their reward, should their startup succeed, would be a lot more "deserved".
Also, high salaries for founders is an issue only when the founders did not fund their own business.
You're right, in a startup, funded by VC, that pays the founders significantly more salary than their employees, is a lot less equitable compared to a bootstrapped startup funded by the founders' credit cards, or a VC funded startup that pays its founders little. In the latter cases, the founders take a lot more risk, and so their reward, should their startup succeed, would be a lot more "deserved".