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The $8M DoorDash Mistake: Equity Offers
May 6, 2025
Nolan and Kelli unveil the hidden risks of equity compensation, sharing tales like Nolan’s missed $8 million opportunity with DoorDash. They emphasize that understanding share counts and strike prices is crucial for maximizing startup wealth. With practical advice, they equip listeners to navigate the complexities of equity offers and negotiate job terms effectively. The conversation also introduces innovative tools enhancing workforce management, underlining the need for self-education in the intricate world of equity grants.
27:39
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Quick takeaways
- Understanding the total shares outstanding is crucial in equity negotiations to accurately assess the real value of an offer.
- Negotiating terms such as exercise windows and liquidity options can significantly impact financial outcomes for candidates post-employment.
Deep dives
Understanding Equity Negotiation
Equity negotiation is a critical aspect of job offers that many HR leaders and candidates overlook, often leading to suboptimal financial outcomes. It is essential to ask for the total number of shares outstanding and what percentage of the company those shares represent to gauge the real value of an equity offer. For instance, if offered one million options, understanding how many shares have already been given away can influence ownership perception significantly. Many people regret not knowing the implications of these details during their negotiations, which could potentially cost them millions.
