This is the late game, why would an engineer work for a fraction of a percent of equity and a below market salary when they can take a job at FANG?
You've got to be offering something really, really valuable like remote work, an interesting problem, and/or a new experience. Otherwise the math doesn't math.
Totally off the topic of the thread, but it's why I do things differently with the people who work for me. I'm the sole owner of Otherbranch, but I pay out a percentage of profits over certain thresholds (between 25 and 75%, rising at higher levels of profit) to the team. Keeps things concrete and aligns incentives with building something that works today rather than obsessing over a hypothetical exit.
My wife and I used about half the proceeds of those sales to buy a house (cash offer) in late 2021.
I don’t know what proportion of early employees get screwed, but people who do well are usually smart to avoid posting publicly about it (and I am apparently an idiot).
Maybe I'm bitter from getting burned but I don't think this is really counterpoint. Employee #3 you're just shy of being a co-founder and 2011 was an era where equity grants were real and companies weren't yet so clever about handing out Leprechaun gold.
EDIT: Random aside, but I looked up "leprechaun gold" and I guess the trope of a gold-like substance that disappears from your pocket when you're not looking is actually from Harry Potter and not a part of the traditional folklore.
I didn't get "I'm retiring now" money, not even close. But consider I expected nothing, was only a senior-level IC there for a year, and remained an IC after, it made appreciable change in my life and got me a good paying job at Google after.
But I think in that case it had more to do with the parties involved (our management were great people, and Google was motivated to treat us well).
I'd love to replicate this experience, but it ain't gonna happen.
Once you hit a few million in the bank, have a house, priorities kind of shift. Not for everyone, but for those that would work elsewhere for reasons not money.
Put it another way, there are people in every company whose reasons being there can conflict with the motivations of an engineer with the priorities you describe. Often those people end up being your manager.
But unfortunately the answer now is that "best engineers" can't work there either because the layoff / employment-squeeze is in full swing.
You're right that the equity packages offered by startups to engineers are generally insulting. Every time this has come up in negotiation in the last few positions I've interviewed for the founders won't even tell you what % of shares they're offering, nor any sense of what the real value is, just pretend nonsense.
So far I've mostly found different (often worse) kinds of dysfunction and not really much better velocity.
There are broader dysfunctions in our industry.
Unless the frustration led to bad performance reviews, which could have happened.
My mental health would have suffered, but holding on another 1-3 years would have probably led to me being 5 years closer to early retirement.
It was also 2021/2022, when the job market was completely bananas. The temptation to leave and get a decent paying remote job was very high. And at the time I felt Google was doing a very poor job of remote work, at least on the teams I was on. And they made the hybrid in-office unpleasant (floating desks, nobody else there, just a weird vibe).
Hindsight 20/20, etc.
I'm actually now at Google and things are just fine and peachy.
These places are for people who hate thinking but are good at pretending otherwise.
Top talent that accept below-insanely-great pay start their own startups.
I think after the dot-com run-up, "startup" often implied "unprofitable idiot idea that looks plausible long enough to convince VCs to use your company as a demonstration of the greater fool theory." But I said "often," not "always." The critical and vexxing part of this is it's so hard to figure out which idiot ideas are profitable before the VCs shower a small cadre of Stanford GSB grads with cash.