Cash Salary vs. Options

If you think Bangalore is the only place where talent is migrating to larger companies and bigger cash salaries, think again. Ann Winblad says not. In Silicon Valley, Google, Apple, Yahoo, VMWare are pulling talent away from startups.

So what are VCs and entrepreneurs going to do for their employees?

The simple answer is probably raise cash compensation, drop options. There is so much money in the pool anyway, why not just raise valuations, preserve the captable equity structure, and dole out larger salaries?

Not so simple.

Remember the exit price issue?