Re:We need to rethink employee compensation
by campers on Thursday June 25, 2015 @05:32AM
(#9776787)
Agree. Also the return on the options should also be compared to a risk-free/conservative rate from the additional savings from the higher salary.
In somewhere with a high cost of living like SV increases in pay can significantly increase what you can save each year.
Say you take a $100k offer and equity compared to a $120k salary offer. Now lets say on $100k you save $10k year, and if you're on $120k between tax and a bit of extra spending you save $20k.
You've doubled your savings which you can put towards other investments. In this example its another $10k/year you could put into an investment property, stocks or whatever.
Or just go to Vegas each year and play a game of roulette.
In somewhere with a high cost of living like SV increases in pay can significantly increase what you can save each year.
Say you take a $100k offer and equity compared to a $120k salary offer. Now lets say on $100k you save $10k year, and if you're on $120k between tax and a bit of extra spending you save $20k.
You've doubled your savings which you can put towards other investments. In this example its another $10k/year you could put into an investment property, stocks or whatever.
Or just go to Vegas each year and play a game of roulette.