u/johnnyappleb wrote (the comment Michael replied to):
Yah but what if they can land you a ~$140k salary. Is that worth it?
u/michaelnovati replied · ★ FEATURED
Hey, I'm the co-founder of Formation and stumbled upon here. I don't want to mess with the vibe of the thread because there is a good discussion here about cost and outcomes that I don't want to interfere with, but I wanted to add that that percentage is taken off of your base salary and at top tier companies (where most people end up) you receive equity and bonuses that add on to that. So most people don't have a problem paying. The last time we crunched the numbers people on average INCREASED their compensation by $80K. An example case based on numbers would be someone entering Formation making $110K with no bonus or equity, and leaving they are pushing $140K base + $25K/year equity + 10% annual performance bonus + $20K signing bonus.