If you get awarded equity, you'll want to understand vesting and cliffs. A 1-year cliff is pretty common in most places that award equity.
Read more in this blog post I wrote: https://t.co/WxQ9pQh2mY
The 12 most important pieces of information and concepts I wish I knew about equity, as a software engineer.
A thread.
1. Equity is something Big Tech and high-growth companies award to software engineers at all levels. The more senior you are, the bigger the ratio can be:
If you get awarded equity, you'll want to understand vesting and cliffs. A 1-year cliff is pretty common in most places that award equity.
Read more in this blog post I wrote: https://t.co/WxQ9pQh2mY
The most common form of equity compensation at early-stage startups that are high-growth.
And there are *so* many pitfalls you'll want to be aware of. You need to do your research on this: I can't do justice in a tweet.
https://t.co/cudLn3ngqi
A common form of equity compensation for publicly traded companies and Big Tech. One of the easier types of equity to understand: https://t.co/a5xU1H9IHP
5. Double-trigger RSUs. Typically RSUs for pre-IPO companies. I got these at Uber.
7. Phantom shares. An interesting setup similar to RSUs... but you don't own stocks. Not frequent, but e.g. Adyen goes with this plan.
8. Growth shares. A more exotic equity type. Skyscanner awarded these kinds of shares.
More: https://t.co/fuojT1jp4g
11. Taxes. The only certainty with equities is you needing to deal with this. Talk with an expert. This is important.
WeWork. Zenefits. Good Technologies. FanDuel. All cautionary examples.
Until you've cashed in your equity, it can evaporate. Keep this in mind.
Full article: https://t.co/fuojT1jp4g
And finally:
But how do you get into these places? I don't have the answers, but have a few thoughts I'll send out in email form Subscribe here: https://t.co/1I7RGTXS0u
More from Tech
Ok, I’ve told this story a few times, but maybe never here. Here we go. 🧵👇
I was about 6. I was in the car with my mother. We were driving a few hours from home to go to Orlando. My parents were letting me audition for a tv show. It would end up being my first job. I was very excited. But, in the meantime we drove and listened to Rush’s show.
There was some sort of trivia question they posed to the audience. I don’t remember what the riddle was, but I remember I knew the answer right away. It was phrased in this way that was somehow just simpler to see from a kid’s perspective. The answer was CAROUSEL. I was elated.
My mother was THRILLED. She insisted that we call Into the show using her “for emergencies only” giant cell phone. It was this phone:
I called in. The phone rang for a while, but someone answered. It was an impatient-sounding dude. The screener. I said I had the trivia answer. He wasn’t charmed, I could hear him rolling his eyes. He asked me what it was. I told him. “Please hold.”
Wish I had the audio of Rush Limbaugh telling me off on the phone on his show when I was six. In the meantime, RIP.
— Shannon Woodward (@shannonwoodward) February 17, 2021
I was about 6. I was in the car with my mother. We were driving a few hours from home to go to Orlando. My parents were letting me audition for a tv show. It would end up being my first job. I was very excited. But, in the meantime we drove and listened to Rush’s show.
There was some sort of trivia question they posed to the audience. I don’t remember what the riddle was, but I remember I knew the answer right away. It was phrased in this way that was somehow just simpler to see from a kid’s perspective. The answer was CAROUSEL. I was elated.
My mother was THRILLED. She insisted that we call Into the show using her “for emergencies only” giant cell phone. It was this phone:
I called in. The phone rang for a while, but someone answered. It was an impatient-sounding dude. The screener. I said I had the trivia answer. He wasn’t charmed, I could hear him rolling his eyes. He asked me what it was. I told him. “Please hold.”
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THREAD: 12 Things Everyone Should Know About IQ
1. IQ is one of the most heritable psychological traits – that is, individual differences in IQ are strongly associated with individual differences in genes (at least in fairly typical modern environments). https://t.co/3XxzW9bxLE
2. The heritability of IQ *increases* from childhood to adulthood. Meanwhile, the effect of the shared environment largely fades away. In other words, when it comes to IQ, nature becomes more important as we get older, nurture less. https://t.co/UqtS1lpw3n
3. IQ scores have been increasing for the last century or so, a phenomenon known as the Flynn effect. https://t.co/sCZvCst3hw (N ≈ 4 million)
(Note that the Flynn effect shows that IQ isn't 100% genetic; it doesn't show that it's 100% environmental.)
4. IQ predicts many important real world outcomes.
For example, though far from perfect, IQ is the single-best predictor of job performance we have – much better than Emotional Intelligence, the Big Five, Grit, etc. https://t.co/rKUgKDAAVx https://t.co/DWbVI8QSU3
5. Higher IQ is associated with a lower risk of death from most causes, including cardiovascular disease, respiratory disease, most forms of cancer, homicide, suicide, and accident. https://t.co/PJjGNyeQRA (N = 728,160)
1. IQ is one of the most heritable psychological traits – that is, individual differences in IQ are strongly associated with individual differences in genes (at least in fairly typical modern environments). https://t.co/3XxzW9bxLE
2. The heritability of IQ *increases* from childhood to adulthood. Meanwhile, the effect of the shared environment largely fades away. In other words, when it comes to IQ, nature becomes more important as we get older, nurture less. https://t.co/UqtS1lpw3n
3. IQ scores have been increasing for the last century or so, a phenomenon known as the Flynn effect. https://t.co/sCZvCst3hw (N ≈ 4 million)
(Note that the Flynn effect shows that IQ isn't 100% genetic; it doesn't show that it's 100% environmental.)
4. IQ predicts many important real world outcomes.
For example, though far from perfect, IQ is the single-best predictor of job performance we have – much better than Emotional Intelligence, the Big Five, Grit, etc. https://t.co/rKUgKDAAVx https://t.co/DWbVI8QSU3
5. Higher IQ is associated with a lower risk of death from most causes, including cardiovascular disease, respiratory disease, most forms of cancer, homicide, suicide, and accident. https://t.co/PJjGNyeQRA (N = 728,160)
