This is why if you're joining a startup as an employee you should ask for either a competitive market salary or real equity (not the insultingly low amount that normally gets offered as equity -- an actual stake).

I think a lot of people join startups and take a bad deal because they think the company will take care of them when the company makes it. Or they think they'll have more opportunity for promotions in the startup because of its small size and their early stake. The problem is usually executive roles are filled from outside the company rather than from internal promotions, and as this article illustrates, the founders don't necessarily care about the people at the bottom until it's bluntly pointed out to them how mass departures could fuck up the business.