Negotiation Course: Recruiter Case Study: Insights From An Ex-Amazon Recruiter

This was a conversation with a recruiter who spent several years as a recruiter at Amazon and Uber.

She believed everyone should negotiate, but only when the company wants to give you an offer. 

- Most recruiters won’t prevent you from shooting yourself in the foot if you share too much information in the phone screen.
- Amazon would let go of unreachable candidates, e.g. Meta, if they sensed the candidate was already lost.

She also shared the dangers of getting starstruck with a company, e.g. Uber hiring in LATAM hired many people who didn't negotiate at all.

Negotiation Course: View The Recruiter As Ally, Not Antagonist

Recruiters get a bad reputation, but they can actually help you a lot! The recruiter's job is to get qualified people to work for the company, so there is incentive alignment between both parties.

Instead of viewing the recruiter as an obstacle you must overcome, view them as an ally and a valuable source of information. 

- **Before the interview**,  ask them what will be on the interview and what advice they'd have to prepare.
- **After the interview**, ask them what parts of the comp are likely to change, and build the relationship with them so they can advocate for you.

How do you build a relationship with the recruiter? 

- Say thank you whenever the recruiter shares an update with you: *"Thank you for sharing, I appreciate your clear communication throughout this process!"*
- Show an interest in the job and what makes it unique. Don't ask generic questions. 

Keep in mind that most recruiters are not technical and may not understand the value you bring as an engineer. (Unlike the hiring manager, who will know intimately what role they're hiring for.)

Understand 2 different types of recruiters:

- **Contract (agency) recruiters** are compensated for landing a butt in the seat: they’ll be much more transactional and focused on getting you to accept an offer (any offer).
- **In-house recruiters** will usually NOT see a direct financial gain if you accept the offer. They are evaluated based on goals around recruiting conversion metrics.

Negotiation Course: Closing The Deal

If you’re willing to sign the offer, **you have manufactured leverage you can use to squeeze out additional compensation with high probability**. Tell the recruiter you’re willing to sign the offer immediately if they can give you X, where X is a bit higher than the current offer.

A good choice is to ask for an extra $10K-$20K in sign-on bonus. Companies are willing to do this since it’s a one-time cost but they can guarantee you sign. But $10K is be life-changing for many people.

Making the final request focused on salary or equity is a bit more difficult since it often requires more people’s approval. Your goal in this final round of negotiation is to propose something quick and a no-brainer for the company.

Phrasing:

> I'm eager to use my experience to have impact quickly at \[COMPANY\]. I'm willing to sign the offer today if you can add a signing bonus of $15,000. This would make the offer compelling for me so I can commit to \[COMPANY\] for the next phase of my career.

Ideally you want things in writing. Some recruiters will tell you they can’t put it in the formal offer until you’ve verbally agreed, which is fine, but in that case, you can still ask them for a quick email recap with the numbers included.

Negotiation Course: Determine Levers You Can Pull

The typical 4 highest-order bits for a compensation package in tech are salary, equity, signing bonus, and annual bonus. 

Ask an open-ended question to understand what the recruiter is dealing with: 

> What parts of the offer are you able to adjust the most?

In some companies, you’re just given a salary, a single dimension to negotiate on. In this case, your job is to **invent other parameters on which you can negotiate**. e.g. talk about benefits, title, and other things that you’re willing to give up in order to optimize the thing you really care about.

You can share other offers here, but be prepared to show proof (Rahul had to do this in 2013 when he had to show the Google recruiter the numbers from the Twitter offer)

Negotiation Course: Determine Compensation Benchmarks

The key inputs to determine compensation are level, role/title, industry, geography

Use tools like [levels.fyi](http://levels.fyi) and glassdoor to understand what the typical market rate for the job is.

- **Level**: Offers are formulaic based on level, so you can obviously expect. Don’t reveal this to the recruiter.
- **Industry**: if your job as a SWE is a supportive role for the main product of the company, you’ll typically be paid less (e.g. engineer in healthcare compared to engineer in FAANG)
- **Geography**: California and New York are more expensive than other parts of the US and certainly more expensive than most of the world.

One pro tip here: use <https://h1bdata.info/> to see salary data that companies are legally required to report to the government

However, these sources can be out of date or show an incomplete picture, so the best source is talking to friends or people in the community, like in Taro.

In Rahul’s case, he had a pretty good idea that Snap gave out a lot of equity, Meta gave out huge signing bonuses, etc.

Negotiation Course: What If I HAVE To Give A Number?

A common complaint is that despite their best efforts, some tech workers are forced to give an expected compensation number to do a full interview at a company.

**Rebuttal #1**: You can just put a placeholder. e.g. put $1 for your salary expectation.

**Rebuttal #2**: Collect data from your network and provide a wide range. Ambiguity is your friend here, just talk about how compensation is one factor for you.

**Rebuttal #3**: Finally, even if you give a number you're unhappy with with, the interview is still good practice for you.

By the time you provide numbers, you ideally have done the legwork to know what to expect.

If you have to give a number, say the minimum number that is feasible for you. e.g. you need $250k TC to pay mortgage but the job's upper band is $180k)

Negotiation Course: How To Practice Negotiation Skills

Just like anything else, practice makes perfect. But conceptually understanding negotiation and practicing negotiation is very, very different.

Be aware of the difference in the incentives and working model between a job negotiation (once every 2 years) and your operational model on the job (every day).

- One (the job) is built on shared understanding, sharing vulnerability. There's a clear incentive to make life more comfortable for people around you.
- One (the negotiation) is **not** built on shared understanding. The person who wins is the person who can tolerate discomfort.

The upshot of all this is that negotiation is extremely important but you don’t get to practice much. Verbalize the advice and practice in conversation with a friend or family member.

Nail Your Promotion As A Software Engineer [Part 28] - This Might Not Be Enough

So many software engineers feel unfairly treated when it comes to their promotion, being stuck at the same level forever. And here's the thing - A lot of them are right! This lesson teaches you:

- The right mentality to have when it comes to deciding between doubling down and jumping ship
- The large career cost of switching teams, especially if you are changing companies in the process
- A framework to use when figuring out whether you should give up and change teams or continue plodding on and fighting for that promotion

Ace Your Tech Interview As A Software Engineer [Part 25] - Practical Coding

Practical interview coding rounds are the purest form of software engineering and what software engineers generally hope the interviews are (at least when they complain about data structures and algorithms problems online). This lesson teaches you:

- What a practical coding round is and when to expect it
- What kinds of companies give practical coding rounds
- How to prepare for practical coding rounds

To get the absolute best practice for practical coding rounds, check out our side projects playlist: [\[Taro Top 10\] Building Impressive Side Projects](https://www.jointaro.com/playlist/vKUWMgmmaEvzcYUXZs4B/)

Pinterest Case Study: The Ultimate Guide To Navigating A PIP

This was a non-engineer who had several years of experience before joining Pinterest.

- **Before**: 90 days after joining, was told they needed to improve

- **During**: “Completely blindsided” when placed on PIP at the 4 month mark. Goalposts kept shifting, didn’t receive feedback until 4 weeks later

- **After**: Took the termination after taking leave for interview prep

What is a PIP? The Ultimate Guide To Navigating A PIP

A PIP is a **Performance Improvement Plan**. A PIP covers specific areas of performance deficiencies and sets clear expectations for what needs to happen in the future to remain employed. Think about a PIP as an ultimatum, essentially telling the employee that "Something needs to change." The employee has been deemed (whether fairly or unfairly, as we’ll see) to be missing their targets.

The PIP will outline a plan to improve the employee’s performance, along with milestones to hit over 1-3 months. The manager will document instances where your performance was lacking, pulling in quotes from colleagues, individual code reviews, or emails you may have sent (or have not) sent. A PIP can feel like a personal attack: the manager will spend hours compiling an argument "against you", explaining why you're not meeting expectations.

We’ll talk about specific strategies to use if you’re on a PIP, but for now, just remember this: **You can still have an amazing career after a PIP.**

Being on a PIP is like being on an extended interview. You have all the anxiety and judgment from a high-pressure environment, but it's actually worse: instead of starting from neutral, you're starting with a negative perception. And a multi-month interview sounds terrible.

Employees on a PIP are not allowed to switch teams. The company has concerns about whether the employee can productively contribute to the company, so they want to avoid the chaos of allowing team switches. This is unfortunate because you may just have a really poor fit with your manager.

Because of the overhead involved with a PIP, generally only medium and large companies will issue them.

The Human Resources (HR) team is involved in every PIP, which is a bad sign. The main function of HR, if not the sole function, is to protect the company’s interests, not the employees’. Once HR gets involved, and the manager has started documenting gaps in the employee's performance, clearly that indicates that there’s been a loss of trust.

This course will cover 4 phases of the PIP lifecycle:

- Before the PIP (but perhaps in the danger zone)
- Receiving the PIP within the company and deciding what to do
- Case studies of Individual Contributors (ICs) who received PIPs, along with managers who have delivered PIPs
- After the PIP -- how to ensure you have a great career even if you received a PIP

Course Introduction: The Ultimate Guide To Navigating A Performance Improvement Plan (PIP)

You’ve probably heard about a PIP, a Performance Improvement Plan. You might be in danger of one, you’re going through one right now, or you’re about to join a company with a widespread PIP culture.

There’s no getting around it: **PIPs are scary.** Receiving a PIP means that there is a perceived deficiency in your performance, and something needs to change. It’s obvious why you might feel tremendous anxiety or fear around a PIP: your job is at stake.

Simply put, **a PIP is one of the most stressful things you can go through as a tech employee**. 

A quick online search reveals tons of discussion in forums about PIPs. It’s easy to get the impression that a PIP is a hopeless situation, and anyone who is unfortunate enough to receive one should simply give up. This is simply not true: whether you’re on a PIP or not, there is a path forward.

The objective for this course is to provide a structured way for you to identify what you can (and should) do to get the best outcome for yourself.

I’m Rahul, the course instructor. I’ve been an engineer at various-sized companies for a decade before I left to start Taro. I was an Engineering Manager and Staff Engineer at Meta (Facebook for the OGs), and before that I worked on Android at Pinterest. I graduated from Stanford with a Bachelor’s and Master’s degree in Computer Science, and my first job after graduation was founding engineer at a failed startup. 

In researching this course, I talked to dozens of engineers who have received PIPs, along with several managers who have delivered PIPs to their reports. You’ll hear some of their stories in the section dedicated to case studies (from companies like Amazon, Meta, Pinterest, MassMutual, and MongoDB). What became clear from chatting with so many employees is (1) there’s far too much stigma around a PIP and (2) there’s not enough support for people who have received one. This course aims to change that.

In addition, we’ve combined our own personal experience with dozens of hours of online research (we mostly ignored anonymous trolls in forums…).

I’ll occasionally refer to engineers throughout this course, but pretty much all the content is applicable to any type of tech worker (Product Manager, Data Scientist, Designer, etc). Software Engineers are not the only job function that must deal with a PIP!

Final note: my goal with this course it to be hyper-practical; this should be useful to you. I’ll be sharing best practices that have worked for many tech workers, but we can’t cover exact details across all companies in all geographies. I’m not an employment lawyer and I have never worked in Human Resources. You may want to get consultative help if your situation is unique. 

Connect with Rahul: 

- [Taro](https://www.jointaro.com/p/rahul-pandey/)
- [LinkedIn](https://www.linkedin.com/in/rpandey1234/)
- [YouTube](https://youtube.com/rpandey1234)

Read more about PIPs: 

- <https://jointaro.com/topic/performance-improvement-plan>
- <https://www.jointaro.com/blog/breaking-down-the-tech-company-mark-of-death-the-pip/>

Ask Me Anything (AMA) with a Senior Eng Director - Sanjay Siddhanti

[**Sanjay Siddhanti**](https://www.linkedin.com/in/sanjaysiddhanti/) is a Senior Director of Engineering at AKASA. After graduating from Stanford, he previously held engineering roles at Counsyl, Karius, and Flatiron Health.

Sanjay's background:

I'm the Senior Director of Engineering at AKASA. I joined AKASA in 2019 as one of the first employees when we were a seed-stage startup. I originally joined AKASA as an individual contributor, and quickly switched over to management. I built much of the company's early technology as an IC and later as a tech lead / manager. I also started and managed multiple engineering teams at the company, including Platform Engineering, now an org with 20 engineers.

Happy to answer questions about:

- How engineering leaders think about the role of Senior, Staff, and Principal ICs.
- How and why to transition from IC to management
- The differences between an Engineering Manager vs Engineering Director
- How to hire and retain great talent
- How to succeed in a startup environment.

Ethan Evans' Career Path: Startup Manager to Amazon VP

[Ethan Evans](https://www.linkedin.com/in/ethanevansvp/) is a retired Amazon VP. He shared his career journey starting out during the dot-com boom of the 1990s, quickly ascending as a manager at a string of startups.

**Early Career and Management Path:**

- Ethan started in management early, taking on a TPM role for a small project due to the team's need.
- He was drawn to leadership because the project lacked organization, focus, and communication.
- Ethan was supported by managers and encouraged to continue in the role. He progressed through several startups, growing in each one and reaching VP level by the third.

**Joining Amazon:**

- Ethan was a "fake" startup VP before going getting downleveled as a manager at Amazon, and it took years for him to return to a true VP role, managing a team of 800 people.
- The startup he was at was failing, and Amazon offered more compensation despite being giving a worse title.
- He initially managed a team of six at Amazon, which eventually grew to 800. 

Ethan credits his rapid ascent to:

- Seeing problems and proactively solving them.
- Taking initiative and asking for more responsibility.
- Curiosity and motivation to understand the bigger picture.

More to explore: 

- [\[Taro Top 10\] Software Engineer To Engineering Manager (IC -&gt; M Track)](https://www.jointaro.com/playlist/oz0mnJvHHgM8NfVF7rgp/)
- [What's the difference between Big Tech and startups in terms of learning and growth?](https://www.jointaro.com/question/KWXIrFIR1EIJsvdOdo7u/whats-the-difference-between-big-tech-and-startups-in-terms-of-learning-and-growth/)
- [How much am I hurting my career by staying at a startup? (Pressure to work for big tech)](https://www.jointaro.com/question/dqCvmYhI9WE0k33orZEP/how-much-am-i-hurting-my-career-by-staying-at-a-startup-pressure-to-work-for-big-tech/)

Demystifying LLM Benchmarks -- How To Compare Large Language Models?

In the recent launch of Google's Large Language Model (LLM) Gemini, Google claimed that "Gemini beats human level performance on MMLU" but you might be wondering:

- What are the different evaulation criteria? Massive Multitask Language Understanding (**MMLU**)? General Language Understanding Evaluation (**GLUE**)? **HumanEval**?
- How can we know which model is good at coding tasks?
- What is considered "human-level performance"?
- How do they actually get the results for these benchmarks?

In this talk, Sai breaks down all the benchmarks you need to know to be better informed when papers claim to beat benchmarks.

The next paper reading session is on January 8 at 5pm: [**https://www.jointaro.com/event/paper-reading-group-4-mistral-7b/**](https://www.jointaro.com/event/paper-reading-group-4-mistral-7b/)

**Your host:**

[**Sai Shreyas Bhavanasi**](https://www.linkedin.com/in/b-sai/) has worked in Computer Vision and Reinforcement Learning and published 2 first-author papers. He has also worked as an MLE and Data Analyst.

Ask Me Anything (AMA) with a Disney Eng Director - Greg Benson

[**Greg Benson**](https://www.linkedin.com/in/greg7gkb/) is the Director of Engineering at Disney Streaming (Disney+, Hulu, ESPN+ Star+). Further questions and discussions are on the [AMA thread](https://www.jointaro.com/question/CdPjNOXvU882180yzs6R/im-greg-ex-googlenetflix-current-director-at-disney-ama/).

Previously, he was the Engineering Manager at Google, where he worked from 2017 - 2021. Prior to that, he was a manager at Netflix during the hypergrowth phase (2013 - 2017). Greg also has a deep background in music and audio, having received a Masters in Music & Audio Technology in 2003, and then working with Dolby for more than 5 years.

After leaving Google and before joining Disney, Greg took a career break to learn, explore, and recharge. He traveled to Ghana, learned about accounting, became a startup advisor, and read a lot.

Greg answered many questions in this Ask Me Anything (AMA). This session was moderated by [Igor Podkhodov](https://www.linkedin.com/in/podkhodov/). 

**Transitioning From Engineer to Manager: Insights and Expectations**

Greg shared his experience transitioning from an engineer to a management role. 

- Ask strategic questions in one-on-one and skip-level meetings, focusing on career trajectory and higher-level considerations. 
- Individual ownership and accountability are critical to ensure you succeed and build trust. 

They also discussed the purpose of skip-level meetings, which included understanding the expectations of senior staff and determining one's career trajectory. They emphasized the importance of adapting to different organizational and cultural contexts, as expectations can vary between companies. Igor added that it's important to verify the direction of one's actions during skip-level check-ins.

**Career Breaks and Influential Readings**

Greg discussed their influential reading materials, including [Creativity Inc](https://www.amazon.com/Creativity-Inc-Overcoming-Unseen-Inspiration/dp/0812993012), [Beyond Entrepreneurship](https://www.amazon.com/Beyond-Entrepreneurship-Turning-Business-Enduring/dp/0133815269), and [Leading Teams: Setting the Stage for Great Performances](https://www.amazon.com/Leading-Teams-Setting-Stage-Performances/dp/1578513332). He also shared their career journey, which involved tenures at Amazon, Netflix, and Google, a break of about a year and a half, and a transition to Disney. Greg quit his job at Google during the Covid-19 pandemic due to the challenges of remote work and the mental health burden. They emphasized the importance of taking breaks in one's career and the potential implications of extended gaps in one's employment history.

**Speeding up Engineering Velocity**

Greg discussed their experience at Disney, highlighting a less engineering-oriented approach compared to their previous roles. They also shared their insights on the factors that could accelerate an engineering team's velocity, such as testing, team culture, and the use of large systems. Greg further discussed the use of AI and large language models in the development process. During his time off, Greg learned more about AI and ML which helped him feel more confident in leveraging new advancements. For truly paradigm-shifting technologies (like AI), you won't be "too late" if you start adapting now.

**Mentorship and Career Growth**

Igor asked Greg about their approach to mentorship and its impact on their career growth. Greg shared that they have never used a career coach but has found mentorship through ad hoc interactions with colleagues. They emphasized the importance of reaching out to people for help and guidance, asserting that most people are willing to assist. They also shared their strategy of researching potential mentors before reaching out and being open-minded about learning from people in different roles and departments. Igor agreed with Greg's approach, noting the importance of persistence in finding a willing mentor.

**Career Progression**

- In a challenging economy (and world events), Greg advised holding out for a decent job that you're actually excited about, emphasizing the importance of following interests and passions. 
- Your specialization and expertise can help stand out in the job market. Startups often will have more growth and personal satisfaction. 

**Engineering Career Paths and Management Challenges**

Igor raised a question about career paths for engineers, emphasizing the need to understand motivations and challenges of growth into staff engineer or manager roles. Greg highlighted the significant responsibility that comes with a managerial role, including handling team issues, and advised finding an environment that supports career growth. They discussed the challenges and rewards of transitioning from an individual contributor to a managerial role, including loss of control, recognition, and specific deliverables, as well as the ambiguity and subjectivity of performance evaluation. The discussion ended open-ended with Prakash seeking insights on handling disagreements within teams.

**Managing Conflict: Strategies and Challenges**

Greg and Igor discussed the complexities of conflict within teams, with Greg sharing their experience and strategies for managing discord. Greg emphasized the importance of understanding power dynamics, providing coaching and feedback, and attempting to understand the other person's perspective. They also highlighted the challenges of balancing objectivity and support, and the importance of expressing empathy when disagreeing with someone. Igor shared their experience of trying to help a direct report dealing with personal issues, and learned the importance of empathy and understanding in communication. Greg also discussed the importance of different modes of listening, potential pitfalls of problem-solving over brainstorming, and the concept of escalation in conflict resolution. They suggested that if a manager is not supportive, it's important to know one's limits and consider finding a different team or having a direct conversation with the manager.

**Building Trust and Influence in the Workplace**

Greg shared his thoughts on building trust and influence in the workplace. 

- Honesty and transparency are paramount, with consistent actions over words. 
- Listening attentively and empathizing with others can help establish trust quickly. 

Greg also underscored the significance of documentation for accountability and avoiding circular conversations. They further discussed the involvement of politics in management roles, explaining that it's less about merit and more about relationships and perceptions. They clarified that healthy politics involves branding/reputation and accurately communicating achievements, rather than manipulating facts.

**Managing People and Avoiding Burnout**

Greg discussed their approach to managing people who don't read documentation, emphasizing the importance of empathy and support over shaming. They suggested providing opportunities for people to catch up, followed by a conversation if the issue persists. Igor then asked Greg about handling workload and avoiding burnout. Greg suggested contextualizing the effectiveness of meetings and encouraged individuals to assert agency over their time by choosing not to attend wasteful meetings, prioritizing their own work.

Further questions and discussions are on the [AMA thread](https://www.jointaro.com/question/CdPjNOXvU882180yzs6R/im-greg-ex-googlenetflix-current-director-at-disney-ama/).

How To Build A Fulfilling Career Path For Your Engineers

We’ve all been there – you want to be there for your team, but you end up pushing back 1:1 meetings because there’s a lot on your plate. Or your team member wants to practice a particular framework but you don’t have any upcoming work that would let them do that. Or you’re heading into a career development conversation and trying to figure out how to share some tough feedback.

At the same time, a regular piece of feedback from individual contributors is that they’d like their managers to provide more support for their career development..

So what’s an engineering manager to do? How can we help our teams build fulfilling careers while juggling their asks with all the other work on our plate? And how do we balance their development areas with completing the work that needs to be done? Doing this well will not only help our team’s satisfaction and morale, but also support our own progress in our organization – but it’s easier said than done.

This talk provides concrete tips to help you do better in supporting your team on their career development journey. We’ll talk about strategies to:

- The bedrock for a fulfilling career (awareness)
- Make time for 1:1s – even when things get busy!
- Focus 1:1’s on growth & development (not work)
- Balance between improving weaknesses versus cultivating strengths

This is a talk Rahul gave at the [Tech Leaders Chat](https://www.meetup.com/tech-leader-chats/events/293719388/) hosted by [Multitudes](https://www.multitudes.co/).

Master The Art of Successful Negotiations: Unlock Your Full Potential

A practical negotiation workshop led by Nadav Klein, professor at INSEAD and instructor at Minerva Project. 

Nadav discussed the importance of negotiation skills in both professional and personal life, emphasizing the need to understand human behavior and the mechanics of negotiations. He highlighted the significance of practice -- the more you do it, the better you become!

It's important to identify zero-sum issues vs cooperative issues in negotiations. You should **strive to find ways to cooperate and create win-win situations by understanding and prioritizing the differences in what each party wants**. Critical to this is to bridge the information gaps and understand how we evaluate ourselves vs how others evaluate us.

- [Connect with Nadav on LinkedIn](https://www.linkedin.com/in/nadavklein/)

More resources on negotiations:
- [The #1 Rule Of Negotiation - How To Avoid Giving A Number](https://www.jointaro.com/lesson/4T3wTorG47wPzSqVmAOx/the-1-rule-of-negotiation-how-to-avoid-giving-a-number/)
- [[Case Study] How To Land 18 FAANG+ Offers With Steven Zhang (Airtable, USDR, Tableau)](https://www.jointaro.com/lesson/gGkO4pLeFq1ctRM9tSBF/case-study-how-to-land-18-faang-offers-with-steven-zhang-airtable-usdr-tableau/)
- [3 Quick, Powerful Negotiation Tips](https://www.jointaro.com/lesson/8VeEnbxdbPKsZbTcCFm5/3-quick-powerful-negotiation-tips/)

How Top Tech Companies Handle Management Transitions Differently

This video highlights the nuanced and often sensitive dynamics of engineering manager transitions within tech teams, using Facebook as a case study. It explores how both internal promotions and external hires can be challenging and how strong companies approach the shift with transparency and collaboration.

- **Internal promotions can create awkward dynamics**: When someone from a team of peers is promoted to manager, the shift in role—especially around performance reviews, compensation, and trust—can feel uncomfortable.
- **External hires lack context**: Bringing in a new manager from outside the team can also be disruptive, as they need time to understand the team’s dynamics, working styles, and personalities.
- **Facebook uses a “team consent” model**: At Facebook, any potential new manager—whether internal or external—essentially interviews with the team they would manage. The team's agreement is required before finalizing the transition.
- **Two-way relationship emphasized**: It’s not just the company or leadership choosing a manager; reports also have a say in who manages them. If someone objects, alternative reporting arrangements can be made.
- **Manager-report alignment matters**: The process underlines the belief that management relationships must be mutually respectful and compatible in order to be effective.

How To Navigate Your Stock Options

This section of the video explores **what to do with startup stock options**—both while employed and after leaving a company. It emphasizes evaluating offer quality upfront and making strategic decisions about exercising options based on company outlook and personal risk tolerance.

- **Understand the offer**: When joining a startup, it's important to know both the **strike price** (cost to buy shares) and the **fair market value (FMV)** of the shares. A significant gap between these numbers indicates more potential upside.
- **Don’t exercise too early**: While employed, it's typically better to wait before exercising options. Exercising early ties up personal capital and carries risk if the company performs poorly or fails before a liquidity event.
- **Exception for early-stage employees**: If the cost to exercise is very low (e.g., a few hundred dollars), it may make sense to do so early to start the **long-term capital gains clock** for better tax treatment.
- **After leaving the company**: Most startups require options to be exercised within **90 days of departure**. If there's confidence in the company’s future, it may be worth exercising all or part of the options—otherwise, it might be best to walk away.
- **Weigh risk vs. return**: Exercising options is a personal investment decision. If the company is struggling or unlikely to succeed, even favorable strike prices can result in total losses.

Tech Career Growth Videos

Our instructional videos provide software engineers with insights needed for career growth. Masterclasses go incredibly in-depth on a specific tech topic while case studies are real examples from established engineering leaders.