Are ESOPs actually real or just a massive scam?
Every HR tries to lowball the fixed component by shoving equity down my throat but I can't pay rent with paper money bhai.. You slog for years at some startup and when you finally quit the exercise price is so absurd it doesn't even make sense to buy them... assuming the place even survives long enough for a buyback. Has anyone here actually made life-changing wealth from this or are we all just collectively getting played to accept 30% less base pay? Idk man it feels like a legal ponzi scheme at this point.
If company is listed on stock exchange then it's real and worthy
True bhai. Listed company RSUs are as good as cash so that actually makes sense. It's these early-stage startups selling dreams that genuinely frustrate me.
Not always...
For companies like Byjus yes it's a scam.
I know people who have made crores in the recent Groww ipo so definitely not scam.
Over a period of 25 yrs of work, having gotten paper stock from 4 companies, only 1 did go public. Even that tanked to 25% of its actual ipo price. Eventually that company was bought over and delisted. We then employees were given approx of 25% of ipo value minus tax and administration charges. Pittance and not worth any money, brag rights to say we went public....
ESOP = Endless Slog, Optional Payout
FAANG RSU is wealth building cheatcode. For startups, ESOPs are bust or boom. It can go to 0 dollars or can grow 10x. You need to understand the business to understand how much importance to give to that. For me, MS RSU worked out well, and FK is IPOing this year, so fingers crossed
Scam plus startups tend to layoff easily
I know Flipsters who actually made 300Cr+ (you can google it) But 99% startups fail so there’s that. Right place at right time
