Re:Sergey Brin: The Facebook phenomenon is a problem (2007)
by rmbyrro on Wednesday March 30, 2022 @09:22AM
(#30854855)
That's just how life and the universe works. The level of risk employees bear is one of the lowest possible. Reality won't let you go much below that.
I'd bet in most early stage startups nowadays developers are paid way more than the founders themselves. And they work way less hours, with way less stressful problems than the founders.
The difference in pay, hours dedicated and stress (along with damages to health and life in general) represents the founders' risk appetite for future earnings.
Employees are not at all open to bear this level of risk and they should not be compensated for not bearing this risk. Founders and investors deliver value to society by bearing higher risks. We have better and cheaper services as a result. They should be compensated accordingly, so we keep them motivated to continue servicing us in increasingly better ways.
Employees take on considerable risk by joining early startups, and they take on opportunity risk when working for other companies, as well.
An early employee risks their ability to house and feed themselves and their family, along with their ability to afford medical care or retirement, by working at a company that could fold or fire them at any moment. An investor might experience some capital loss they can write off at tax time.