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Comment by munk-a | Hacker News Reader

His advise is only smart if the salary you'd be giving up is unnecessary and you consider it a luxury to lock into an investment you may lose.

In fact, that's exactly what it is, whenever you're taking stock options into account for compensation be sure to consider how big of an investment (in loss of salary) it is and whether the potential payout and the risk seem logical. If you think that making that big of an investment is too risky for your well being (even if, in the average, it'd pay out better over a lot of plays) then don't take it.

We exist for a limited amount of time and large games of chance like this (even if they have an expected return) are not irrational to decline.

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I cannot think of a single employed person that I know for whom turning down a $1000 1000:1 payoff for 10:1 odds is rational. Maybe a recovering gambling addict who would be triggered by this action, but that's about it.

Turning down an offer can be perfectly rational. I do not know why I am being accused of advocating for always taking options. All I'm claiming is that they aren't always worth zero, and assuming such is an irrational decision. And it's an entirely avoidable irrational decision that can be addressed by considering your own risk preferences, foregone salary, tax consequences, expected company outcomes, professional development, &c.

There is so much to factor in, too. I'm pretty happy with options if my base salary gives me a decent quality of life, I certainly wouldn't work for less on a gamble, considering the failure rate of startups. Never mind the fact that you are making a secondary investment in the same place you work, so you are doing worse than putting your eggs in one basket.

It's a nice bonus that _might_ pay something out. It's not a replacement for a proper salary.

That said, I can appreciate the desire to get skin in the game. Would love to see research on how necessary that is, though.

I think you may still be missing the point. What is the harm in completely ignoring the stock options and negotiating strictly on base pay. I think stock options for the most part should be considered like free snacks in the workplace. "Nice-to-have", they taste better because they're free, and if all the sudden they get yanked you didn't stake any livelihood or change of circumstance for it. If they end up becoming something great - maybe you get a new espresso maker, extra bathrooms at work, or an office instead of an open desk. Rarely will stock options change your life that you shouldn't plan on them but a nice perk if they do as they are very infrequently life-changing by any measure.

> His advise is only smart if the salary you'd be giving up is unnecessary and you consider it a luxury to lock into an investment you may lose.

Actually, even then, i'd just take the cash comp instead and invest it into FAANG options. You can do that on almost any brokerage.

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