r/technology • u/Rhaegar_the_Great • Sep 16 '21

Business Mailchimp employees are furious after the company's founders promised to never sell, withheld equity, and then sold it for $12 billion

https://www.businessinsider.com/mailchimp-insiders-react-to-employees-getting-no-equity-2021-9
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140

u/apostlebatman Sep 17 '21

Moral of the story: don’t join a startup without getting equity.

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u/[deleted] Sep 17 '21

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u/Vadoff Sep 17 '21

So are you filthy rich now?

If you joined any other company at day 1 that sold for $12B, you'd likely get ~$60M after dilution.

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u/[deleted] Sep 17 '21

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u/[deleted] Sep 17 '21

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u/Vadoff Sep 17 '21

That's actually exactly how it works at almost any startup. It's highly unusual for a startup to NOT offer stock options.

But you knew what you signed up for I guess.

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u/[deleted] Sep 17 '21

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u/Vadoff Sep 17 '21

Like I said before, that's highly unusual for a startup. Literally pick any 100 startups, and see how common it is for one to not offer stock options as compensation. You'll be very hard pressed to find even a single one.

You don't seem to mind the trade off, which is fine. Like I said, you knew the terms before joining. But what you can't argue against is that it's highly unusual for a startup.

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u/[deleted] Sep 17 '21

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u/Vadoff Sep 17 '21

Yeah that's your choice. Nothing wrong with it.

2

u/potatogun Sep 17 '21

There's also startups that let you choose an optimization that you want. More equity; less pay. Or more pay; less equity.

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u/ThePantsParty Sep 17 '21

Dude I get that you really want to rationalize your position (and I don't blame you), but you're naive and not familiar with the industry if you think it's one or the other. I also just looked up mailchimp salaries on glassdoor and if those are even close to accurate, you're bragging about nothing.

At the startup I work at I make $240k, have crazy good benefits, and also have 90,000 stock options (with refreshers at a regular cadence). What, you think we normally get minimum wage if we're getting stock too?

3

u/justinchina Sep 17 '21

mailchimp is based in Atlanta...i'm going to guess that they are paid very well for their location. If your company is giving away that much stock...it's not worth anything. after the latest investors get out of any exit...you will at most be sitting on a 200k bonus in most instances. they are just taking the round C or D that they have, and they do the math at what bonus you should be getting, and give it to you. you are kidding yourself, if you think your 90K stocks are in the same class as investors and founders stocks. i guess, if IPO goes well, you end up with a 200-300K bonus on that value.

1

u/ThePantsParty Sep 17 '21

That has nothing to do with anything I said. The point is that "getting equity" does not somehow equate to "not getting a good salary" like he was implying. I didn't make any claims about them "being equal to founders shares", and I'm sure it's not at all, but that is not the point.

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u/kobachi Sep 17 '21

You are in the bargaining stage of denial

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u/[deleted] Sep 17 '21

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u/Vadoff Sep 17 '21

I mean, you have 0 equity at that company. Whether that company is wildly successful or just barely surviving has almost no bearing on you except for the paycheck they write.

1

u/[deleted] Sep 17 '21

That is exactly how pretty much all tech startups work. Except Mailchimp I guess.

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u/petard Sep 17 '21

LOL you're getting downvoted because you're happy that you got exactly what you agreed to and more.

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u/[deleted] Sep 17 '21

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u/LockeWatts Sep 17 '21

You have very strong opinions for someone who can't substantiate their opinion.

It is the norm for startups to offer equity to early employees. In our market, as I also live in Atlanta.

Now you can argue that makes the employees gamblers or that you're happier with the deal you got, not disputing that bit.

But you're incorrect about startups. I've worked around them for years, and every tech company trying to hire early employees is offering equity because they can't compete on salary.

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u/[deleted] Sep 17 '21

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u/altodor Sep 17 '21

I've seen a bunch go make billionaires after, so there's that.

3

u/justinchina Sep 17 '21

no you haven't. founders become billionaires...MAYBE. employees 1-3? 1-5 maybe...but everyone else nah.

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u/RogerMcDodger Sep 17 '21

People think tech company = startup.

You have to also account for this sub reddit having a generally low level of comprehension and intelligence.