arbitrage314:<p>Aren&#x27;t you just lowering your risk, while simultaneously lowering your reward?<p>Eg, let&#x27;s say you negotiate a 20k&#x2F;year increase by not getting any stock options. If you spend that 20k to invest in their next round, you&#x27;ll be paying for preferred shares, rather than common shares. Therefore, you&#x27;ll be able to afford about 5x less shares than if you were exercising employee grants. Am I wrong?<p>Sure, you&#x27;ll get preferred shares, but if the company does very well, your ultimate reward will be less.