July 30, 2025
Want to get rich as a W-2 employee? Do This.
Most people spend their entire careers chasing higher salaries. I used to be one of them—until I realized I was playing the wrong game. Wealth isn’t built through salary alone. It’s built through equity.
In this episode, I’ll share the wealth strategy no one talks about—but that transformed my life. Through smart use of equity compensation, I built a $6 million net worth, retired early, and created the freedom to truly live life on my terms.
I break it all down with real-world examples. You’ll meet Sarah, who focused on maximizing her salary, and Jessica, who played the equity game. Even though Jessica earned less in salary, she ended up nearly $1 million ahead—because she understood how stock grants and equity refreshes compound over time.
This isn’t just for tech executives or startup founders. Whether you're an engineer, a product manager, or anyone with access to stock-based compensation, this could be your most powerful wealth-building tool.
So if you’ve ever asked yourself, “How do people actually get rich without starting a company?”—this is the video for you. I’ll walk you through how equity works, how to negotiate for it, and why it might be more valuable than your paycheck.
Transcript
WEBVTT
00:00.191 --> 00:02.915
[SPEAKER_00]: Eric Schmidt, thirty billion dollars net worth.
00:03.756 --> 00:06.820
[SPEAKER_00]: Cheryl Sandberg, two billion dollars net worth.
00:07.500 --> 00:10.945
[SPEAKER_00]: Sachi and Adela, one point one billion dollars net worth.
00:11.385 --> 00:12.627
[SPEAKER_00]: Now here's what's crazy.
00:13.388 --> 00:14.449
[SPEAKER_00]: None of them are founders.
00:15.170 --> 00:17.733
[SPEAKER_00]: and none of them earned their wealth from salary alone.
00:18.114 --> 00:21.058
[SPEAKER_00]: They cracked a code that many technology employees miss.
00:21.398 --> 00:24.682
[SPEAKER_00]: They started trading their time in talent for equity.
00:24.903 --> 00:27.065
[SPEAKER_00]: Now this isn't just for C-suite executives.
00:27.506 --> 00:32.692
[SPEAKER_00]: I'm Christopher Nelson and through equity compensation, I've built a six million dollar net worth.
00:33.193 --> 00:38.617
[SPEAKER_00]: that's allowed me to retire early, travel the world, and spend quality time with my three sons.
00:38.957 --> 00:48.684
[SPEAKER_00]: Over the next few minutes, I want to teach you everything you need to know about why equity, not your salary, is your most valuable wealth building asset.
00:49.124 --> 00:53.467
[SPEAKER_00]: Let me show you what most people miss with some real numbers.
00:56.869 --> 00:59.293
[SPEAKER_00]: Meet Sarah, the salary maximizer.
00:59.733 --> 01:06.883
[SPEAKER_00]: She negotiates hard and gets a hundred and seventy five thousand dollars starting salary with a fifteen percent bonus.
01:07.979 --> 01:12.062
[SPEAKER_00]: and she gets five percent raises on average every single year.
01:12.402 --> 01:21.229
[SPEAKER_00]: So by year five, she ends up at two hundred forty thousand dollars a year and her total earned over five years is one point one million dollars.
01:21.629 --> 01:24.091
[SPEAKER_00]: Now let's meet Jessica the equity player.
01:24.391 --> 01:30.856
[SPEAKER_00]: She takes a hundred fifty thousand dollars salary with regular raises that come cost of living increases.
01:31.196 --> 01:32.097
[SPEAKER_00]: But here's the difference.
01:32.397 --> 01:41.147
[SPEAKER_00]: She gets a hundred and fifty thousand dollars in restricted share unit grants every year for four years plus she's eligible for refreshes.
01:41.408 --> 01:44.912
[SPEAKER_00]: So here's what's happened to those stock grants and her salary.
01:45.512 --> 01:51.739
[SPEAKER_00]: Year one, she gets a hundred and sixty thousand dollars in salary plus a hundred and fifty thousand dollars a year in public stock.
01:52.400 --> 02:08.021
[SPEAKER_00]: year two just a three percent salary raise but she also gets a fifty percent refresh of her original grant by year five her salary and bonus are a hundred eighty five thousand dollars but her stock is worth one point two million dollars
02:08.742 --> 02:10.964
[SPEAKER_00]: and she's also getting refreshed more.
02:11.365 --> 02:15.308
[SPEAKER_00]: The result, Sarah made one point one million dollars in salary.
02:15.689 --> 02:24.217
[SPEAKER_00]: Jessica made eight hundred seventy six thousand dollars in salary, but has one point two million dollars in public company stock.
02:24.497 --> 02:29.964
[SPEAKER_00]: Jessica is nine hundred sixty thousand dollars richer, even though she's made less salary.
02:30.164 --> 02:31.046
[SPEAKER_00]: And here's the kicker.
02:31.286 --> 02:34.911
[SPEAKER_00]: Jessica is nine hundred sixty thousand dollars keeps growing.
02:35.131 --> 02:37.955
[SPEAKER_00]: I didn't even factor in any growth into that math.
02:38.095 --> 02:41.940
[SPEAKER_00]: If she stops working, Sarah's salary stops the day she quits.
02:42.380 --> 02:47.344
[SPEAKER_00]: I know a Google engineer who started with eighty thousand dollars in stock grants in twenty twelve.
02:47.824 --> 02:51.586
[SPEAKER_00]: His equity today is worth around four point three million dollars.
02:51.947 --> 02:52.927
[SPEAKER_00]: What is the difference?
02:53.348 --> 02:55.049
[SPEAKER_00]: She understood in tech.
02:55.209 --> 02:56.670
[SPEAKER_00]: Your equity is in a bonus.
02:57.110 --> 03:00.212
[SPEAKER_00]: It's a wealth building engine every single year.
03:00.392 --> 03:05.156
[SPEAKER_00]: Here's an offer that I help somebody negotiate who went to work for a lift a couple of years ago.
03:05.736 --> 03:11.739
[SPEAKER_00]: What they negotiated for as a principal engineer was a two hundred fifty thousand dollar a year salary.
03:12.260 --> 03:17.362
[SPEAKER_00]: There was also matched with two hundred fifty thousand dollars a year of equity.
03:17.582 --> 03:22.065
[SPEAKER_00]: Now the cool thing about this offer was the fact that it started to vest.
03:22.665 --> 03:29.909
[SPEAKER_00]: in the first month of employment, meaning that they were getting access to this equity compensation right away.
03:30.210 --> 03:42.237
[SPEAKER_00]: The other thing was that it had downside protection, meaning if the stock value went below two hundred fifty thousand dollars, they would get additional shares to make sure that this dollar amount was met.
03:43.034 --> 03:44.916
[SPEAKER_00]: This was five hundred thousand dollars.
03:44.956 --> 03:46.837
[SPEAKER_00]: This was a public technology company.
03:47.258 --> 03:50.221
[SPEAKER_00]: So this was real money in cash and stock.
03:50.261 --> 03:52.102
[SPEAKER_00]: They were receiving every single year.
03:52.463 --> 04:06.475
[SPEAKER_00]: What I wanted to demonstrate is that in the year that they went to work for lift, the stock price shot up from twenty dollars this share to sixty dollars this share literally tripling so that their compensation went from
04:07.296 --> 04:14.182
[SPEAKER_00]: five hundred thousand dollars a year of equity and stock to being worth one million dollars in the first year that they work there.
04:14.442 --> 04:22.348
[SPEAKER_00]: This is the power of when you trade your time and talent for equity and you're not just an employee, but you're also a fractional share owner in the company.
04:22.668 --> 04:26.431
[SPEAKER_00]: This lift employee was truly acting like portfolio CEO.
04:27.172 --> 04:41.163
[SPEAKER_00]: This person reached out to me to help them negotiate for equity, but also selling their shares and being able to take that off the table so they can reinvest it in other assets that were producing cash flow for them.
04:41.243 --> 04:55.835
[SPEAKER_00]: The incredible thing is after one year of employment, they had harvested seven hundred fifty thousand dollar from that initial vesting offer that allowed them to invest in several short-term rentals that are providing them cash flow to this day.
04:56.295 --> 05:00.898
[SPEAKER_00]: For all of you who are thinking about working for equity, realize that there's different flavors.
05:01.418 --> 05:13.245
[SPEAKER_00]: For public companies, they give you RSU's restricted share units that are actual shares of the company that when you work for a period of time, they're yours to own and trade as you want.
05:13.525 --> 05:16.667
[SPEAKER_00]: For startups, for private companies, you get stock options.
05:17.107 --> 05:25.052
[SPEAKER_00]: Those are the right to buy shares at a set price, a little bit more challenging to manage, but they can create a ton of value.
05:25.472 --> 05:30.854
[SPEAKER_00]: Phantom equity for some private equities, that's where you get cash based on the company value.
05:31.274 --> 05:33.935
[SPEAKER_00]: Not as common, but we're seeing it more frequently now.
05:34.435 --> 05:38.757
[SPEAKER_00]: Most people negotiate for the salary and they accept the equity as is.
05:39.457 --> 05:41.118
[SPEAKER_00]: That is completely backwards.
05:41.638 --> 05:49.765
[SPEAKER_00]: when you're trading your time in talent for equity, you're focused on how much ownership you can get in the company and making that a priority.
05:49.925 --> 05:57.011
[SPEAKER_00]: Let me save you from the five costly some mistake that cost many people millions of dollars.
05:57.332 --> 06:01.275
[SPEAKER_00]: Mistake number five, not knowing your market value.
06:01.635 --> 06:04.118
[SPEAKER_00]: Equity compensation exists for one reason.
06:04.638 --> 06:06.860
[SPEAKER_00]: to attract and retain great talent.
06:07.000 --> 06:11.643
[SPEAKER_00]: But you can only capture your true value if you know what you're worth.
06:12.383 --> 06:20.249
[SPEAKER_00]: I see many engineers who have no clue how to articulate their value proposition and the results they bring to the table.
06:20.909 --> 06:29.039
[SPEAKER_00]: They walk into negotiations like they're asking for a favor instead of commanding and negotiating for what they've really earned.
06:29.339 --> 06:30.501
[SPEAKER_00]: You're not a charity case.
06:30.961 --> 06:35.046
[SPEAKER_00]: You are a revenue-generating asset and you need to think like one.
06:35.226 --> 06:40.112
[SPEAKER_00]: Before any equity compensation, do your homework, know your market rate.
06:40.633 --> 06:56.139
[SPEAKER_00]: You can go to levels.fi and look for what your value is right now and be able to quantify the value that you bring because if you can't speak in terms of results, somebody else will and they'll be negotiating circles around you.
06:56.479 --> 07:02.821
[SPEAKER_00]: Mistake number four, not understanding what valuable equity actually is.
07:03.101 --> 07:04.242
[SPEAKER_00]: Here's a reality check.
07:05.042 --> 07:07.543
[SPEAKER_00]: not all equity is created equal.
07:07.823 --> 07:10.844
[SPEAKER_00]: Valuable equity has three characteristics.
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[SPEAKER_00]: Number one, it's liquid.
07:13.264 --> 07:15.205
[SPEAKER_00]: Number two, it's growing in value.
07:15.685 --> 07:18.426
[SPEAKER_00]: And number three, it's tradable when you want it.
07:18.926 --> 07:24.908
[SPEAKER_00]: The early stage startup that's promising you millions in paper wealth, very well be worth just that.
07:25.628 --> 07:25.988
[SPEAKER_00]: paper.
07:26.188 --> 07:37.532
[SPEAKER_00]: I've watched brilliant engineers, executives, gets seduced by these huge equity packages at pre-revenue companies, only to watch those options expire worthless.
07:38.152 --> 07:43.054
[SPEAKER_00]: Meanwhile, public tech companies offer liquid equity that you can actually use.
07:43.214 --> 07:49.296
[SPEAKER_00]: The difference between a Google RSU and a series A startup option isn't just risk.
07:49.896 --> 07:51.877
[SPEAKER_00]: It's the difference between real wealth,
07:52.637 --> 07:53.558
[SPEAKER_00]: and monopoly money.
07:54.018 --> 07:56.921
[SPEAKER_00]: Think like an investor, not a gambler.
07:57.561 --> 07:58.702
[SPEAKER_00]: Ask the hard questions.
07:59.343 --> 08:00.884
[SPEAKER_00]: What's the path to liquidity?
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[SPEAKER_00]: What's a realistic timeline?
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[SPEAKER_00]: What happens if this thing never goes public?
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[SPEAKER_00]: Will there be an option for liquidity?
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[SPEAKER_00]: Mistake number three?
08:10.732 --> 08:12.994
[SPEAKER_00]: Thinking all companies are created equal.
08:13.835 --> 08:15.737
[SPEAKER_00]: This one drives me crazy.
08:16.357 --> 08:24.224
[SPEAKER_00]: I've seen people jump ship for a better equity package without understanding basic company valuation principles.
08:24.824 --> 08:26.305
[SPEAKER_00]: Here's what you need to evaluate.
08:26.906 --> 08:30.089
[SPEAKER_00]: Number one, the company's revenue trajectory.
08:30.549 --> 08:32.451
[SPEAKER_00]: Number two, their competitive mode.
08:33.111 --> 08:37.056
[SPEAKER_00]: What's the quality of their leadership team and their capital structure?
08:37.536 --> 08:46.867
[SPEAKER_00]: A point one percent stake in a company worth ten billion dollars beats a one percent stake in a company worth a hundred million dollars.
08:47.901 --> 08:51.944
[SPEAKER_00]: That's basic math, but you be shocked how many people miss this.
08:52.665 --> 09:02.853
[SPEAKER_00]: If you want more on how to evaluate different companies that you might be considering, I'll link to some videos that I did on private and public company evaluation so that you can learn more.
09:03.113 --> 09:08.918
[SPEAKER_00]: You really need to think like an owner when you're trading your time and talent for equity because that's exactly what you're doing.
09:09.078 --> 09:13.281
[SPEAKER_00]: You're making an investment decision with the most valuable asset you have.
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[SPEAKER_00]: your career in your time.
09:16.454 --> 09:20.400
[SPEAKER_00]: Mistake number two, not knowing what you can actually negotiate.
09:20.600 --> 09:25.787
[SPEAKER_00]: Most people think equity compensation is just about the percentage, just about the number of shares.
09:26.188 --> 09:26.909
[SPEAKER_00]: That's wrong.
09:27.089 --> 09:29.853
[SPEAKER_00]: The real leverage is in the vesting schedule.
09:30.073 --> 09:33.594
[SPEAKER_00]: Standard investing is four years with a one year cliff.
09:33.934 --> 09:36.354
[SPEAKER_00]: But what if you could negotiate a shorter cliff?
09:36.655 --> 09:39.475
[SPEAKER_00]: What about an acceleration clause if you get acquired?
09:39.755 --> 09:41.176
[SPEAKER_00]: What about refresher grants?
09:41.496 --> 09:52.058
[SPEAKER_00]: I want to help a VP of engineering negotiate a modified besting schedule that put an extra eight hundred thousand dollars in his pocket when their company got acquired two years later.
09:52.378 --> 09:57.499
[SPEAKER_00]: Same equity percentage completely different outcome as compared to his peers.
09:57.860 --> 09:59.480
[SPEAKER_00]: Now while the amount matters,
10:00.480 --> 10:04.282
[SPEAKER_00]: when and how you get it can be worth millions more.
10:04.883 --> 10:07.304
[SPEAKER_00]: It can also save you a ton of time.
10:07.464 --> 10:20.611
[SPEAKER_00]: And now I'll end it with mistake number one, treating equity like a savings account that you can just accumulate and forget about equity is an asset and an asset needs to be actively managed.
10:20.951 --> 10:29.235
[SPEAKER_00]: I see tech professionals with eighty to ninety percent of the net worth tied up in one company stock, the same company that they work for.
10:29.515 --> 10:30.937
[SPEAKER_00]: That's not diversification.
10:31.477 --> 10:37.403
[SPEAKER_00]: That is a concentration risk that would make any financial advisor break out in hives.
10:37.764 --> 10:46.052
[SPEAKER_00]: You need a systematic approach to divesting, diversifying, and deploying the equity into income generating assets.
10:46.753 --> 10:57.480
[SPEAKER_00]: I'm talking about tax-efficient strategies, systematic selling programs, and building a portfolio that works for you instead of keeping you tied to this single company's fate.
10:57.900 --> 10:58.561
[SPEAKER_00]: Here's the truth.
10:58.801 --> 11:04.205
[SPEAKER_00]: The wealthiest tech professionals I know aren't the ones that held onto their company stock the longest.
11:04.905 --> 11:10.489
[SPEAKER_00]: They're the ones who built systems to systematically convert the equity into diversified wealth.
11:10.729 --> 11:16.833
[SPEAKER_00]: So as you're starting to work for equity, here's some pro tip questions that you can ask in any interview.
11:16.953 --> 11:19.575
[SPEAKER_00]: Number one is what's the typical refresh cycle?
11:19.975 --> 11:24.578
[SPEAKER_00]: Number two is what percentage of employees have seen meaningful equity returns?
11:25.058 --> 11:31.639
[SPEAKER_00]: And the third one is the most powerful is when you get that offer is everything on this offer negotiable.
11:31.839 --> 11:33.319
[SPEAKER_00]: That's going to set you up for success.
11:33.700 --> 11:37.180
[SPEAKER_00]: Here's your roadmap to start building wealth through equity.
11:37.460 --> 11:39.941
[SPEAKER_00]: Step one, audit your current situation.
11:40.301 --> 11:41.501
[SPEAKER_00]: What equity do you have now?
11:42.001 --> 11:42.881
[SPEAKER_00]: How does it best?
11:43.301 --> 11:46.742
[SPEAKER_00]: And what's it worth today versus when it was granted?
11:47.182 --> 11:50.522
[SPEAKER_00]: Step number two is research your market value.
11:51.102 --> 11:53.763
[SPEAKER_00]: Use levels.fi for compensation data.
11:54.423 --> 11:57.324
[SPEAKER_00]: Focus on total compensation, not just salary.
11:57.724 --> 12:00.805
[SPEAKER_00]: Know the equity ranges for your level.
12:01.125 --> 12:12.549
[SPEAKER_00]: Number three, target the right companies, public companies with growth potential, liquid equity that's growing, or free IPO companies with strong fundamentals.
12:13.009 --> 12:17.471
[SPEAKER_00]: Avoid anything early stage startups, unless you really want a lottery ticket.
12:17.811 --> 12:20.452
[SPEAKER_00]: Step number four, master the negotiation.
12:21.132 --> 12:23.433
[SPEAKER_00]: Know your value and how to talk about it.
12:23.793 --> 12:26.875
[SPEAKER_00]: Always negotiate equity, not just salary.
12:27.055 --> 12:30.716
[SPEAKER_00]: Ask for higher grants and exchange for lower base, it that makes sense.
12:31.156 --> 12:34.078
[SPEAKER_00]: Understand the vesting schedule and the refresh cycle.
12:34.238 --> 12:42.882
[SPEAKER_00]: In number five, the most important thing like an owner, track your equity value monthly, listen in on all of the company calls.
12:43.282 --> 12:46.183
[SPEAKER_00]: Understand when you can sell and start divesting.
12:46.323 --> 12:49.865
[SPEAKER_00]: Plan your well strategy around vesting schedules.
12:50.525 --> 12:53.889
[SPEAKER_00]: Look, most tech employees are playing the wrong game.
12:53.969 --> 12:58.914
[SPEAKER_00]: They're optimizing for salary, a linear time-based asset that caps out.
12:59.095 --> 13:03.179
[SPEAKER_00]: But the real wealth builders, they're optimizing for ownership.
13:03.439 --> 13:06.863
[SPEAKER_00]: That's how you go from making money to building wealth.
13:07.744 --> 13:13.527
[SPEAKER_00]: That's how you transition from employee to someone who actively manages their wealth like a business.
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[SPEAKER_00]: The opportunity is there.
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[SPEAKER_00]: The question is, are you going to keep trading your time for money or are you going to start trading your time and talent for equity?
13:23.292 --> 13:35.518
[SPEAKER_00]: Now, if you have between one and thirty million dollars in net worth and want to learn how do you build a complete wealth system around your equity, including tax strategies, diversification, and generational planning,
13:36.118 --> 13:40.502
[SPEAKER_00]: Check out wealthops.io or click the link in the description below.
13:40.522 --> 13:48.508
[SPEAKER_00]: And if you want to learn how to operate your wealth as a business, check out this video on starting a microfamily office.
00:00.191 --> 00:02.915
[SPEAKER_00]: Eric Schmidt, thirty billion dollars net worth.
00:03.756 --> 00:06.820
[SPEAKER_00]: Cheryl Sandberg, two billion dollars net worth.
00:07.500 --> 00:10.945
[SPEAKER_00]: Sachi and Adela, one point one billion dollars net worth.
00:11.385 --> 00:12.627
[SPEAKER_00]: Now here's what's crazy.
00:13.388 --> 00:14.449
[SPEAKER_00]: None of them are founders.
00:15.170 --> 00:17.733
[SPEAKER_00]: and none of them earned their wealth from salary alone.
00:18.114 --> 00:21.058
[SPEAKER_00]: They cracked a code that many technology employees miss.
00:21.398 --> 00:24.682
[SPEAKER_00]: They started trading their time in talent for equity.
00:24.903 --> 00:27.065
[SPEAKER_00]: Now this isn't just for C-suite executives.
00:27.506 --> 00:32.692
[SPEAKER_00]: I'm Christopher Nelson and through equity compensation, I've built a six million dollar net worth.
00:33.193 --> 00:38.617
[SPEAKER_00]: that's allowed me to retire early, travel the world, and spend quality time with my three sons.
00:38.957 --> 00:48.684
[SPEAKER_00]: Over the next few minutes, I want to teach you everything you need to know about why equity, not your salary, is your most valuable wealth building asset.
00:49.124 --> 00:53.467
[SPEAKER_00]: Let me show you what most people miss with some real numbers.
00:56.869 --> 00:59.293
[SPEAKER_00]: Meet Sarah, the salary maximizer.
00:59.733 --> 01:06.883
[SPEAKER_00]: She negotiates hard and gets a hundred and seventy five thousand dollars starting salary with a fifteen percent bonus.
01:07.979 --> 01:12.062
[SPEAKER_00]: and she gets five percent raises on average every single year.
01:12.402 --> 01:21.229
[SPEAKER_00]: So by year five, she ends up at two hundred forty thousand dollars a year and her total earned over five years is one point one million dollars.
01:21.629 --> 01:24.091
[SPEAKER_00]: Now let's meet Jessica the equity player.
01:24.391 --> 01:30.856
[SPEAKER_00]: She takes a hundred fifty thousand dollars salary with regular raises that come cost of living increases.
01:31.196 --> 01:32.097
[SPEAKER_00]: But here's the difference.
01:32.397 --> 01:41.147
[SPEAKER_00]: She gets a hundred and fifty thousand dollars in restricted share unit grants every year for four years plus she's eligible for refreshes.
01:41.408 --> 01:44.912
[SPEAKER_00]: So here's what's happened to those stock grants and her salary.
01:45.512 --> 01:51.739
[SPEAKER_00]: Year one, she gets a hundred and sixty thousand dollars in salary plus a hundred and fifty thousand dollars a year in public stock.
01:52.400 --> 02:08.021
[SPEAKER_00]: year two just a three percent salary raise but she also gets a fifty percent refresh of her original grant by year five her salary and bonus are a hundred eighty five thousand dollars but her stock is worth one point two million dollars
02:08.742 --> 02:10.964
[SPEAKER_00]: and she's also getting refreshed more.
02:11.365 --> 02:15.308
[SPEAKER_00]: The result, Sarah made one point one million dollars in salary.
02:15.689 --> 02:24.217
[SPEAKER_00]: Jessica made eight hundred seventy six thousand dollars in salary, but has one point two million dollars in public company stock.
02:24.497 --> 02:29.964
[SPEAKER_00]: Jessica is nine hundred sixty thousand dollars richer, even though she's made less salary.
02:30.164 --> 02:31.046
[SPEAKER_00]: And here's the kicker.
02:31.286 --> 02:34.911
[SPEAKER_00]: Jessica is nine hundred sixty thousand dollars keeps growing.
02:35.131 --> 02:37.955
[SPEAKER_00]: I didn't even factor in any growth into that math.
02:38.095 --> 02:41.940
[SPEAKER_00]: If she stops working, Sarah's salary stops the day she quits.
02:42.380 --> 02:47.344
[SPEAKER_00]: I know a Google engineer who started with eighty thousand dollars in stock grants in twenty twelve.
02:47.824 --> 02:51.586
[SPEAKER_00]: His equity today is worth around four point three million dollars.
02:51.947 --> 02:52.927
[SPEAKER_00]: What is the difference?
02:53.348 --> 02:55.049
[SPEAKER_00]: She understood in tech.
02:55.209 --> 02:56.670
[SPEAKER_00]: Your equity is in a bonus.
02:57.110 --> 03:00.212
[SPEAKER_00]: It's a wealth building engine every single year.
03:00.392 --> 03:05.156
[SPEAKER_00]: Here's an offer that I help somebody negotiate who went to work for a lift a couple of years ago.
03:05.736 --> 03:11.739
[SPEAKER_00]: What they negotiated for as a principal engineer was a two hundred fifty thousand dollar a year salary.
03:12.260 --> 03:17.362
[SPEAKER_00]: There was also matched with two hundred fifty thousand dollars a year of equity.
03:17.582 --> 03:22.065
[SPEAKER_00]: Now the cool thing about this offer was the fact that it started to vest.
03:22.665 --> 03:29.909
[SPEAKER_00]: in the first month of employment, meaning that they were getting access to this equity compensation right away.
03:30.210 --> 03:42.237
[SPEAKER_00]: The other thing was that it had downside protection, meaning if the stock value went below two hundred fifty thousand dollars, they would get additional shares to make sure that this dollar amount was met.
03:43.034 --> 03:44.916
[SPEAKER_00]: This was five hundred thousand dollars.
03:44.956 --> 03:46.837
[SPEAKER_00]: This was a public technology company.
03:47.258 --> 03:50.221
[SPEAKER_00]: So this was real money in cash and stock.
03:50.261 --> 03:52.102
[SPEAKER_00]: They were receiving every single year.
03:52.463 --> 04:06.475
[SPEAKER_00]: What I wanted to demonstrate is that in the year that they went to work for lift, the stock price shot up from twenty dollars this share to sixty dollars this share literally tripling so that their compensation went from
04:07.296 --> 04:14.182
[SPEAKER_00]: five hundred thousand dollars a year of equity and stock to being worth one million dollars in the first year that they work there.
04:14.442 --> 04:22.348
[SPEAKER_00]: This is the power of when you trade your time and talent for equity and you're not just an employee, but you're also a fractional share owner in the company.
04:22.668 --> 04:26.431
[SPEAKER_00]: This lift employee was truly acting like portfolio CEO.
04:27.172 --> 04:41.163
[SPEAKER_00]: This person reached out to me to help them negotiate for equity, but also selling their shares and being able to take that off the table so they can reinvest it in other assets that were producing cash flow for them.
04:41.243 --> 04:55.835
[SPEAKER_00]: The incredible thing is after one year of employment, they had harvested seven hundred fifty thousand dollar from that initial vesting offer that allowed them to invest in several short-term rentals that are providing them cash flow to this day.
04:56.295 --> 05:00.898
[SPEAKER_00]: For all of you who are thinking about working for equity, realize that there's different flavors.
05:01.418 --> 05:13.245
[SPEAKER_00]: For public companies, they give you RSU's restricted share units that are actual shares of the company that when you work for a period of time, they're yours to own and trade as you want.
05:13.525 --> 05:16.667
[SPEAKER_00]: For startups, for private companies, you get stock options.
05:17.107 --> 05:25.052
[SPEAKER_00]: Those are the right to buy shares at a set price, a little bit more challenging to manage, but they can create a ton of value.
05:25.472 --> 05:30.854
[SPEAKER_00]: Phantom equity for some private equities, that's where you get cash based on the company value.
05:31.274 --> 05:33.935
[SPEAKER_00]: Not as common, but we're seeing it more frequently now.
05:34.435 --> 05:38.757
[SPEAKER_00]: Most people negotiate for the salary and they accept the equity as is.
05:39.457 --> 05:41.118
[SPEAKER_00]: That is completely backwards.
05:41.638 --> 05:49.765
[SPEAKER_00]: when you're trading your time in talent for equity, you're focused on how much ownership you can get in the company and making that a priority.
05:49.925 --> 05:57.011
[SPEAKER_00]: Let me save you from the five costly some mistake that cost many people millions of dollars.
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[SPEAKER_00]: Mistake number five, not knowing your market value.
06:01.635 --> 06:04.118
[SPEAKER_00]: Equity compensation exists for one reason.
06:04.638 --> 06:06.860
[SPEAKER_00]: to attract and retain great talent.
06:07.000 --> 06:11.643
[SPEAKER_00]: But you can only capture your true value if you know what you're worth.
06:12.383 --> 06:20.249
[SPEAKER_00]: I see many engineers who have no clue how to articulate their value proposition and the results they bring to the table.
06:20.909 --> 06:29.039
[SPEAKER_00]: They walk into negotiations like they're asking for a favor instead of commanding and negotiating for what they've really earned.
06:29.339 --> 06:30.501
[SPEAKER_00]: You're not a charity case.
06:30.961 --> 06:35.046
[SPEAKER_00]: You are a revenue-generating asset and you need to think like one.
06:35.226 --> 06:40.112
[SPEAKER_00]: Before any equity compensation, do your homework, know your market rate.
06:40.633 --> 06:56.139
[SPEAKER_00]: You can go to levels.fi and look for what your value is right now and be able to quantify the value that you bring because if you can't speak in terms of results, somebody else will and they'll be negotiating circles around you.
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[SPEAKER_00]: Mistake number four, not understanding what valuable equity actually is.
07:03.101 --> 07:04.242
[SPEAKER_00]: Here's a reality check.
07:05.042 --> 07:07.543
[SPEAKER_00]: not all equity is created equal.
07:07.823 --> 07:10.844
[SPEAKER_00]: Valuable equity has three characteristics.
07:11.504 --> 07:12.784
[SPEAKER_00]: Number one, it's liquid.
07:13.264 --> 07:15.205
[SPEAKER_00]: Number two, it's growing in value.
07:15.685 --> 07:18.426
[SPEAKER_00]: And number three, it's tradable when you want it.
07:18.926 --> 07:24.908
[SPEAKER_00]: The early stage startup that's promising you millions in paper wealth, very well be worth just that.
07:25.628 --> 07:25.988
[SPEAKER_00]: paper.
07:26.188 --> 07:37.532
[SPEAKER_00]: I've watched brilliant engineers, executives, gets seduced by these huge equity packages at pre-revenue companies, only to watch those options expire worthless.
07:38.152 --> 07:43.054
[SPEAKER_00]: Meanwhile, public tech companies offer liquid equity that you can actually use.
07:43.214 --> 07:49.296
[SPEAKER_00]: The difference between a Google RSU and a series A startup option isn't just risk.
07:49.896 --> 07:51.877
[SPEAKER_00]: It's the difference between real wealth,
07:52.637 --> 07:53.558
[SPEAKER_00]: and monopoly money.
07:54.018 --> 07:56.921
[SPEAKER_00]: Think like an investor, not a gambler.
07:57.561 --> 07:58.702
[SPEAKER_00]: Ask the hard questions.
07:59.343 --> 08:00.884
[SPEAKER_00]: What's the path to liquidity?
08:01.485 --> 08:03.026
[SPEAKER_00]: What's a realistic timeline?
08:03.767 --> 08:06.029
[SPEAKER_00]: What happens if this thing never goes public?
08:06.649 --> 08:08.370
[SPEAKER_00]: Will there be an option for liquidity?
08:09.071 --> 08:10.172
[SPEAKER_00]: Mistake number three?
08:10.732 --> 08:12.994
[SPEAKER_00]: Thinking all companies are created equal.
08:13.835 --> 08:15.737
[SPEAKER_00]: This one drives me crazy.
08:16.357 --> 08:24.224
[SPEAKER_00]: I've seen people jump ship for a better equity package without understanding basic company valuation principles.
08:24.824 --> 08:26.305
[SPEAKER_00]: Here's what you need to evaluate.
08:26.906 --> 08:30.089
[SPEAKER_00]: Number one, the company's revenue trajectory.
08:30.549 --> 08:32.451
[SPEAKER_00]: Number two, their competitive mode.
08:33.111 --> 08:37.056
[SPEAKER_00]: What's the quality of their leadership team and their capital structure?
08:37.536 --> 08:46.867
[SPEAKER_00]: A point one percent stake in a company worth ten billion dollars beats a one percent stake in a company worth a hundred million dollars.
08:47.901 --> 08:51.944
[SPEAKER_00]: That's basic math, but you be shocked how many people miss this.
08:52.665 --> 09:02.853
[SPEAKER_00]: If you want more on how to evaluate different companies that you might be considering, I'll link to some videos that I did on private and public company evaluation so that you can learn more.
09:03.113 --> 09:08.918
[SPEAKER_00]: You really need to think like an owner when you're trading your time and talent for equity because that's exactly what you're doing.
09:09.078 --> 09:13.281
[SPEAKER_00]: You're making an investment decision with the most valuable asset you have.
09:14.191 --> 09:16.154
[SPEAKER_00]: your career in your time.
09:16.454 --> 09:20.400
[SPEAKER_00]: Mistake number two, not knowing what you can actually negotiate.
09:20.600 --> 09:25.787
[SPEAKER_00]: Most people think equity compensation is just about the percentage, just about the number of shares.
09:26.188 --> 09:26.909
[SPEAKER_00]: That's wrong.
09:27.089 --> 09:29.853
[SPEAKER_00]: The real leverage is in the vesting schedule.
09:30.073 --> 09:33.594
[SPEAKER_00]: Standard investing is four years with a one year cliff.
09:33.934 --> 09:36.354
[SPEAKER_00]: But what if you could negotiate a shorter cliff?
09:36.655 --> 09:39.475
[SPEAKER_00]: What about an acceleration clause if you get acquired?
09:39.755 --> 09:41.176
[SPEAKER_00]: What about refresher grants?
09:41.496 --> 09:52.058
[SPEAKER_00]: I want to help a VP of engineering negotiate a modified besting schedule that put an extra eight hundred thousand dollars in his pocket when their company got acquired two years later.
09:52.378 --> 09:57.499
[SPEAKER_00]: Same equity percentage completely different outcome as compared to his peers.
09:57.860 --> 09:59.480
[SPEAKER_00]: Now while the amount matters,
10:00.480 --> 10:04.282
[SPEAKER_00]: when and how you get it can be worth millions more.
10:04.883 --> 10:07.304
[SPEAKER_00]: It can also save you a ton of time.
10:07.464 --> 10:20.611
[SPEAKER_00]: And now I'll end it with mistake number one, treating equity like a savings account that you can just accumulate and forget about equity is an asset and an asset needs to be actively managed.
10:20.951 --> 10:29.235
[SPEAKER_00]: I see tech professionals with eighty to ninety percent of the net worth tied up in one company stock, the same company that they work for.
10:29.515 --> 10:30.937
[SPEAKER_00]: That's not diversification.
10:31.477 --> 10:37.403
[SPEAKER_00]: That is a concentration risk that would make any financial advisor break out in hives.
10:37.764 --> 10:46.052
[SPEAKER_00]: You need a systematic approach to divesting, diversifying, and deploying the equity into income generating assets.
10:46.753 --> 10:57.480
[SPEAKER_00]: I'm talking about tax-efficient strategies, systematic selling programs, and building a portfolio that works for you instead of keeping you tied to this single company's fate.
10:57.900 --> 10:58.561
[SPEAKER_00]: Here's the truth.
10:58.801 --> 11:04.205
[SPEAKER_00]: The wealthiest tech professionals I know aren't the ones that held onto their company stock the longest.
11:04.905 --> 11:10.489
[SPEAKER_00]: They're the ones who built systems to systematically convert the equity into diversified wealth.
11:10.729 --> 11:16.833
[SPEAKER_00]: So as you're starting to work for equity, here's some pro tip questions that you can ask in any interview.
11:16.953 --> 11:19.575
[SPEAKER_00]: Number one is what's the typical refresh cycle?
11:19.975 --> 11:24.578
[SPEAKER_00]: Number two is what percentage of employees have seen meaningful equity returns?
11:25.058 --> 11:31.639
[SPEAKER_00]: And the third one is the most powerful is when you get that offer is everything on this offer negotiable.
11:31.839 --> 11:33.319
[SPEAKER_00]: That's going to set you up for success.
11:33.700 --> 11:37.180
[SPEAKER_00]: Here's your roadmap to start building wealth through equity.
11:37.460 --> 11:39.941
[SPEAKER_00]: Step one, audit your current situation.
11:40.301 --> 11:41.501
[SPEAKER_00]: What equity do you have now?
11:42.001 --> 11:42.881
[SPEAKER_00]: How does it best?
11:43.301 --> 11:46.742
[SPEAKER_00]: And what's it worth today versus when it was granted?
11:47.182 --> 11:50.522
[SPEAKER_00]: Step number two is research your market value.
11:51.102 --> 11:53.763
[SPEAKER_00]: Use levels.fi for compensation data.
11:54.423 --> 11:57.324
[SPEAKER_00]: Focus on total compensation, not just salary.
11:57.724 --> 12:00.805
[SPEAKER_00]: Know the equity ranges for your level.
12:01.125 --> 12:12.549
[SPEAKER_00]: Number three, target the right companies, public companies with growth potential, liquid equity that's growing, or free IPO companies with strong fundamentals.
12:13.009 --> 12:17.471
[SPEAKER_00]: Avoid anything early stage startups, unless you really want a lottery ticket.
12:17.811 --> 12:20.452
[SPEAKER_00]: Step number four, master the negotiation.
12:21.132 --> 12:23.433
[SPEAKER_00]: Know your value and how to talk about it.
12:23.793 --> 12:26.875
[SPEAKER_00]: Always negotiate equity, not just salary.
12:27.055 --> 12:30.716
[SPEAKER_00]: Ask for higher grants and exchange for lower base, it that makes sense.
12:31.156 --> 12:34.078
[SPEAKER_00]: Understand the vesting schedule and the refresh cycle.
12:34.238 --> 12:42.882
[SPEAKER_00]: In number five, the most important thing like an owner, track your equity value monthly, listen in on all of the company calls.
12:43.282 --> 12:46.183
[SPEAKER_00]: Understand when you can sell and start divesting.
12:46.323 --> 12:49.865
[SPEAKER_00]: Plan your well strategy around vesting schedules.
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[SPEAKER_00]: Look, most tech employees are playing the wrong game.
12:53.969 --> 12:58.914
[SPEAKER_00]: They're optimizing for salary, a linear time-based asset that caps out.
12:59.095 --> 13:03.179
[SPEAKER_00]: But the real wealth builders, they're optimizing for ownership.
13:03.439 --> 13:06.863
[SPEAKER_00]: That's how you go from making money to building wealth.
13:07.744 --> 13:13.527
[SPEAKER_00]: That's how you transition from employee to someone who actively manages their wealth like a business.
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[SPEAKER_00]: The opportunity is there.
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[SPEAKER_00]: The question is, are you going to keep trading your time for money or are you going to start trading your time and talent for equity?
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[SPEAKER_00]: Now, if you have between one and thirty million dollars in net worth and want to learn how do you build a complete wealth system around your equity, including tax strategies, diversification, and generational planning,
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[SPEAKER_00]: Check out wealthops.io or click the link in the description below.
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[SPEAKER_00]: And if you want to learn how to operate your wealth as a business, check out this video on starting a microfamily office.
