And equally importantly, get paid for the work you do (i.e. don't let anyone convince you to work nights & weekends for a year to "build the company" based on a hypothetical payout).
Cap tables are indeed very complex. Often there's also a preference on preferred stock, meaning that the preferred gets a minimum return (often 300% or 400%) before the common gets anything.
Fully agreed with the other comments: ignore equity in early stage startups and go for a market rate salary.
The one situation where I would take a lower salary is if there's concrete plans that a company will go public within 12 months, and you're going to be in a senior enough job that you'll be in the know about it.
Re:Just how much is that 2% really worth?
by lightblade on Thursday July 03, 2014 @12:28PM
(#7984017)
I wonder what if I used the stock options money to purchase lottery tickets, would I have more chance of winning big? Since stock options vests over 5 years and lottery tickets draws every week, I tend to think you have better chance winning the lottery than winning on your options.
Bottom line: Insist to get paid what you're worth and take any options as a free lottery ticket that will probably never get you anything.