Startup Workers’ Dreams of Big Payouts Are Put On Hold

For employees, joining a startup can be like making a bet: That getting shares in the business will one day provide a lucrative payout, despite the long hours and instability. Rank-and-file staff who are in the right place at the right time – a hot company in a soaring market – can score millions. But even in the good times, many workers walk away without much to show for their stock options.

And this year is not poised to be a good time. Late-stage companies that were expected to enter the public markets this year are facing uncertainty, and big-ticket company sales have become increasingly rare. The result is less liquidity for startup workers, more interest in creative ways to cash out and, for many, at least a short-term hit to compensation.