“In some companies, the initial job contracts are misleading, and mention a nominal price of $0.01.”
Startup engineers sign for a 4-year grant with a 1-year cliff and no idea what the exercise price is until the board meets. Zaides wants managers to walk them through bankruptcy, a sale at current valuation and a 10X exit. His own math leaves out dilution from future rounds, the part that quietly shrinks every one of those scenarios. Companies keep employees confused because confused employees accept smaller grants.