Ask HN: I am underpaid and overworked – how much equity do I deserve? | Hacker News Reader

Ask HN: I am underpaid and overworked – how much equity do I deserve?

6 pointsthr0waw4y2 comments

<this is a throwaway account> Background: For the past 2 years, I have been part of a custom software development company run by myself and two relatives, one of which owns 100% of the company. I've been quite severely underpaid for the past 2 years, but I had agreed to it because I knew the company couldn't afford it yet and I ultimately wanted to have equity in the company. I was under the impression that I was going to be part of a hustling team that would work together to build something great. In reality, the owner has effectively checked out and expects me and my other relative to run the company for him. I need to have a talk with him for how much equity myself and the other relative deserve, in addition to salary increase. The company has sustained positive YOY growth, but the actual finances and how the money gets spent is more of a shady subject.

How do you think I should approach this? How much equity does someone in my position deserve? I realize I haven't provided all the details, but any advice would help.

If it were anyone other than your relative, I would tell you "A consulting company has two meaningful assets: existing relationships with employees capable of doing the work and existing relationships with clients capable of paying for the work. 100% of the company's assets exist in your back pocket. This suggests that your BATNA to not receiving an equitable amount of the company is, approximately, that you set up shop down the road and very quickly that shop is everything that this now-hollowed-out-husk once was, except with a cap table which reflects reality. You may not realize this, but this is one of the oldest stories in consulting."

Given that it's your relative, I'd weight "Hmm I probably don't want to damage relationship with X" against the economic reality that X is exploiting you while adding no value to the business. How you decide to act on that weighing is up to you. If it were me, I'd probably tell X "It's been fun working with you for the last two years. I'm looking for a new adventure. See you at the next family reunion!"

The relative that owns the company is your father, right?

Find a new job. If you can't, develop yourself further by getting involved in an open-source project that you care about. No guarantees, but that can lead you to a new job.

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