Suggestions
Khailee Ng
Managing Partner at 500 Global
Highlights
Salary or Equity?
While salary is received up front, and tends to be the focus - Sure, you'll need a fair salary, but where possible, I have always encouraged people I care about to optimize for equity / stock options. Or, if you're in a partnership or investment firm like ours, it means carried interest (called 'carry', kind of like a profit share).
Earning a higher salary in a no carry / equity environment is fine too - if you can keep your expenses modest. Then, you get rich by saving and investing wisely.
However, how many people who have higher salaries may be tempted to take out loans to upgrade a car / home to keep up with others who have taken out even bigger loans, or to go on more lavish holidays, shopping, eating out etc. You don't accumulate savings or have enough to invest.
So the best thing to do is to keep personal burn/expenses modest enough and avoid lifestyle creep... AND maximize equity / carry - as it has a chance of paying off.
My dad took a pay cut from a large oil and gas firm to work in a small oil and gas startup. When that startup went public, he worked even harder. After a few years, the stock went up 88 times. He liquidated some to help put relatives through school, put me and my brothers through university, and secure his own retirement.
When I built my startup, SAYS.com , I wanted those who built it with me to have the benefit of what my dad's boss did for him. Upon exit, I made a few multi-millionaires, and one of them bought a home, car, and savings to retire his single mom. He would have never been able to do that in his twenties if all he had was a high salary.
Equity, carry and profit share matters. Do the math on the package to see if it make sense vs the risk.
But one more thing matters even more than equity / carry.
Building.
Find a place that you can build vs a place where you fit into something that is built by someone else. When you build, you learn an inner resourcefulness that'll get you through any financial hardship. You obtain the power to build fortunes and empires. Do it in your next gig, or even your own startup, one day. The power is yours, because you've learned to build.
Spending years in a place where you're building is tiring. Places where you can truly build may also tend to be younger outfits that pay less. But when you build, you end up building who you are - and that can pay off even more.
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500 Global / 500 Southeast Asia have open roles spring open from time to time, and especially for investment roles, they quickly get filled. I want to see more partners, more carry recipients, and a platform where everyone builds. Some new roles will be popping up in the next few months so follow me / those pages. And yes, we are expanding carry plans for folks who qualify - even for non-investment roles.
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