I've got an offer from a startup. The role is a step up, more senior title, and more interesting work, but my total compensation would drop by about forty five percent compared to where I am now. The difference is equity. If they IPO in the next few years, I could make way more than I'm making now. If they don't, or if the stock is worthless, I've just taken a massive pay cut for nothing. I'm trying to decide if I'm crazy for even considering it. I've got a mortgage and a kid. Stability matters. But I'm also miserable at Open Text. Has anyone taken this kind of risk and had it pay off?
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I've never seen this work out. Every time options come into play, to cash in if/when the company does an IPO, it's been a big fat goosegg for me. Last time, they wiped out the options by merging my company with another. Then, after a year, they sold the combined company to OT.
So yeah. Options aren't a carrot. They are a voucher for a picture of a carrot.
@e3 I was a 20 something millionaire on paper in 2000 and in 2001 it was worth $0. If you are single and have no obligations, you can take that gamble and 10-20% it will payoff. But most startup like new restaurants fail. If you are supporting a family, don’t take the risk. But continue looking for a job outside of OpenText. Your better days will eventually come.
I wouldn't take a pay cut! I left OT for a startup and got acquired. How confident do you feel in this start-up and do they have a good product? What's the culture like at this other company? Glassdoor will tell a lot about a company. Leaving was the best decision I've made… a real company culture will shine light on where they are headed.
Had a prof in college who had worked in industry for decades. He told someone talking to him about stock options and company equity, "I've been rich on paper multiple times in life. Don't get too hung up on things like stock because I haven't seen it work out for many people I know. If you believe in the company then it could be a good thing, but don't be surprised if the company never goes anywhere."
"Stability" and "Opentext" do not compute.
Unless you are absolutely starving for money staying at a cesspool like OT is insane, take the job, brush up on your skills - continue searching for a new job from the startup.
Stay at OpenText but continue to look for work elsewhere.
If all you can say is “if they IPO in next few years” then it’s a hard pass.
there's plenty of other job out there too
If you were single and had no dependents, the risk may be worth it. But in your situation, it is definitely not worth the gamble. Also consider the fact that your shares may get diluted as the startup grows, and in the end you may not make as much as you initially thought. If you're really desperate to leave this sewer, try to negotiate something better with the startup, or maybe find a better offer elsewhere.
I had a similar situation but have a wife, 2 kids, and a mortgage. I had to decide for me and my peace of mind that I couldn’t take the chance. You have to decide if you can live with the risk/reward. Very hard choice for someone with a family. Lot to lose
@OP Everyones situation is different. Irrespective of role the big question for me is how desirable or need is there for their software, if it is anyway a nice to have(and I mean anyway) I would avoid like the plague and that is from someone who has been at two start ups, both ended badly for everyone across all job roles.