Photo: Fat Joe
Last week, after we learned that Facebook had poached a Foursquare engineer and that Google had to give an employee $3.5 million worth of stock so it would not go to Facebook, we asked:What Is Facebook Telling Recruits That Has Them Turning Down Google’s Cash And Hot Startup Jobs?
Here’s what we’ve heard so far.
It’s mostly gossip from industry sources:
- Facebook is NOT offering recruits huge salaries. In fact, one source tells us the company is strict about paying fairly low salaries.
- Facebook IS offering good engineers lots and lots of stock (restricted stock, but stock).
- How much? Depends on the quality of the engineer. Solid engineers are promised stock worth hundreds of thousands. Good ones, maybe the stock is worth million dollars. Stars can get stock offers reaching several million dollars.
- BUT HERE’S THE CATCH: Those huge numbers are what the stock could/should be worth SOME DAY.
- Here’s how TechCrunch described the situation: “Facebook is quietly telling people, never in writing, that there’s no reason their stock won’t hit $100 billion in total valuation over the next couple of years. No guarantees, yadda yadda, but hey if you get 1/10 of 1%, that’s $100 million in stock.”
- These millions of dollars are NOT a sure thing. Facebook stock trading secondary markets currently implies a $49 billion valuation. The company would have to more than double to reach $100 billion. Facebook’s valuation is shooting like a rocket right now – its revenues are finally in the billions of dollars – but there is obviously some risk that the growth won’t continue.