I work with a lot of startup CEOs to ensure that they understand that equity they pay out is equal to actual time and cash.
So its not just a “random number” that they “re giving, but it equals a value for time that they “re asking people for.
So it really is just an education issue – if more people have the conversation about “what is this equity worth?” then they “ll treat it as cash, and work accordingly.
However, if someone is working less-hard because they aren “t getting paid cash then you “ve picked the wrong team.
Originally Posted: https://www.quora.com/What-are-some-newer-software-companies-that-could-be-highly-profitable-today-if-all-team-members-were-paid-at-market-in-cash
Originally Posted On: 2016-05-27