>unless I knew he had high cash expenses like kids in school).
Thats the rub for us older startup joiners... I had two options at my current company, and while the spread was very small as compared to your Palantir example - because I have high kid expenses I chose less stock but higher wage...
Although, I'd prefer if they looked at the discussion going on over employee equity, with only 20 employees thus far, their option package are nowhere near even what people have been throwing out for discussion :(
See, I think that its really unfair to offer employees these options with the high cash one being the "wrong" choice. people have expenses and there's nothing wrong with choosing less risk in favor of cash up front. It doesn't mean that you "don't believe" in the mission or any bullshit like that.
One motivation behind this model is exactly people in situations like yours. Your liquidity needs should be cyclical. The IE model fully supports taking varying amounts of cash each month and getting something approaching a fair-valued amount of equity each time.
I actually think investors put enough of a premium on equity vs many employees that a reasonable case can be made for very tight equity distribution, using something like this proposed model, and periodic cash bonuses.
I actually have an even weirder idea for equity in big companies -- each class of incoming employees gets founder shares in a company comprised of hires. (Per month, per team, not sure); essentially like a PEO. Company buys that entity giving employees a capital gain related to their group's contribution at purchase time. Standard 4/1 repurchase on the founder shares within that group.
Thats the rub for us older startup joiners... I had two options at my current company, and while the spread was very small as compared to your Palantir example - because I have high kid expenses I chose less stock but higher wage...
Although, I'd prefer if they looked at the discussion going on over employee equity, with only 20 employees thus far, their option package are nowhere near even what people have been throwing out for discussion :(