Indian YouTuber Ishan Sharma, who recently became a social media sensation after criticising the tipping culture in American restaurants, has shared one crucial mistake to avoid while landing a new job and finalising your salary.
He revealed that he was promised $120,000 in stock, but there was a twist. (LinkedIn/Ishansharma7390)
“Want to work at a startup? Avoid this mistake!” Sharma, the startup co-founder, posted on LinkedIn while sharing the video.
“It is very important to understand the CTC breakdown, the percentage you have in hand, how much is your ESOP, how much is your rent subsidy and whether the amount you have in hand is really reasonable compared to the cost of living in that city,” he said. (Related article: YouTuber in tipping scandal gets ‘elite treatment’ at Delhi’s most expensive mall)
Watch the viral video here:
Pay with a twist
In the video, he talks about the mistakes that no one should make when negotiating salary for a new job, especially at a startup, as he turns the camera to another man who talks about his first job at a startup after graduating from college.
“Right out of college I got a job offer from a startup company. They offered me a base salary of $120,000 in Silicon Valley plus $120,000 in stock. I thought it was a great opportunity because I could make $240,000 a year,” he said.
He revealed that he was promised $120,000 in stocks, but there was a twist.
“I quickly realized that the $120,000 in stock would be spread over four years,” he said, explaining that that would mean an extra $40,000 per year, bringing his total annual salary to $160,000 instead of $240,000.
Additionally, he explained, his $40,000 in stock hadn’t vested and therefore had no value in the startup company. “So, I only got $120,000 for the year,” he said, adding that after rent and taxes, he had very little left over to save.
(Related article: Indian man causes controversy in US restaurant after leaving just 10% tip, claims waiter didn’t refund remaining amount)
“A lucrative offer with horrifying details”
He advised all new employees to learn how stock vesting works before joining a startup that offers stock vesting as part of their salary.
“$120,000 a year may sound great, but if you live in downtown San Francisco, it’s not enough to live comfortably. Many companies have lucrative-looking offers that are filled with hard-hitting details. A startup ESOP doesn’t necessarily translate to big money,” Sharma wrote in the post.
Most LinkedIn users in the comments section of the post disagreed with Sharma’s stern warning, with many saying the base salary was reasonable for an entry-level employee: “I don’t think the taxes are that high. Can you give me a breakdown? Also, when you join as an entry level employee you usually get $70,000-80,000. $120,000 sounds good,” one user said.
