Options vs. Cash
Cash is nearly always better for the employee. Startups like options because:<p>1. They can &quot;pay&quot; people with &quot;free&quot; pieces of paper that effectively cost nothing from a cash standpoint<p>2. It helps keep staff onboard by slapping golden handcuffs on<p>3. In the event that these paper options turn into something with actual value that only happens if the founders and investors make a ton of money first, so at that point they don&#x27;t really care what the options &quot;cost&quot;. It&#x27;s like writing a paycheck that can only be cashed if the founders&#x2F;investors get rich. A great deal for them, not so great for you.<p>Net net all these things benefit the founders&#x2F;investors and not the person receiving the options. In nearly all cases people are getting options as part of core comp because the company can&#x27;t afford to pay out all that cash. It&#x27;s important potential employees understand that when agreeing to a base package that is heavily in options vs cold cash. Options should be treated as a bonus that may pay off but very likely won&#x27;t, not base comp.