Hunt4dealz

Enterprise Account Executive

Employment Package // Compensation Advice (Seed Series Startup)

Curious how y'all savages would go about structuring your comp plan at a Seed Series company.

I'd be the #2 sales hire and employee number ~38. SaaS product in Climate Tech. They raised $9.5m in their initial seed round with some of the bigger climate tech VC's.

They can't confidently say they have a true PMF just yet, so the next 6-12 months would be spent proving that out on the sales team.

Long story short, I think it COULD be a great opportunity to get on the ground floor and eventually close some massive deals, but it's obviously RISKY.

How would you structure OTE?

How would you structure Equity?

How would you structure the ramp?

How would you structure a severance package?

My thoughts are:

structure OTE 70/30
focus more on guaranteed comp than equity initially
Review their equity offer
Negotiate for a shorter or immediate cliff
Ask for a 3-month ramp (guaranteed commish)
Ask for a 3-month severance package

^ not sure if the above is a ridiculous // "greedy" request, given it's a seed startup with limited capital and SUPER mission-driven.

💰 Compensation

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17 comments

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Pachacuti

Politicker

7

They call me Daddy, Sales Daddy

Get this out of the way first - You are jumping into a very high risk/potentially high reward scenario. And I assume you want to go for this.

That said, your variable comp may be near zero since PMF isn't there. So I would focus Y1 on base+equity (and YES on the severance package - you are taking as much of a risk on them as they are on you)

Moving into Y2, you can look to making some sales, but probably not many. So start migrating the comp toward a justifiable mix of base + variable comp.

Beyond the second year, move toward that 70/30 base/variable you're thinking about. HOWEVER - You probably won't be there in 3 years, but its nice to think about it. If anything, you may want to focus on a severance which includes a scenario of being acquired as well (protect your job through a transfer of ownership)

jefe

Arsonist

7

🍁

All of this.

Hunt4dealz

Executive

0

Enterprise Account Executive

Great ideas. I like where your heads at. I think the biggest challenge now is figuring out what I should ask for regarding compensation.
My current comp is $175k Base - 350k OTE at another startup. That said, I'm pacing to pull like 220-250k this year...

Curious how you'd go about figuring out what a fair base salary would be...considering I'm going to push for it to be 80-90% of my pay in year 1.

Not used to negotiating for a higher skew toward base salary.

jefe

Arsonist

0

🍁

What stage is your current startup? That seems like it could be a lot of money for seed stage org without PMF.

Hunt4dealz

Executive

0

Enterprise Account Executive

My current startup is Seed stage too, but I was hired to expand the US market AKA land new logos.
35 people sit in Australia, and only 4 people sit in the USA. I'm one of 3 sales reps globally.

Pachacuti

Politicker

0

They call me Daddy, Sales Daddy

Have they discussed compensation with you? I feel like this is jumping the gun a bit.

And a base of $175 is pretty darn good, especially at a start up and especially considering you aren't at 100% at the current company (based on your OTE and current earnings).

Why are you even considering leaving your current company? Seems you're doing ok financially.

jefe

Arsonist

0

🍁

Basically what I was thinking, @Pachacuti

Kosta_Konfucius

Politicker

4

Sales Rep

I don't think these are greedy in any way, I can be much help on the equity portion but everything else is reasonable.
I would be prepared to defend them and constantly ensure them you are bought into their mission

Hunt4dealz

Executive

1

Enterprise Account Executive

Appreciate the feedback and solid advice!

DataCorrupter

Politicker

1

Account Executive

Totally agree with this. I might feel a similar way to you, just double checking that I'm not getting too greedy (not a tag you want attached to you), but if you can defend it then it's probably reasonable.

Plus, unlikely they give you everything you ask for anyway.

Beans

Big Shot

3

Enterprise Account Executive

This is self preservation, you're taking a huge risk and they have the opportunity to shift back to a more standard model Y2 after you and the company prove itself to each other.

oldcloser

Arsonist

2

💀

After reading the comments, this seems like jumping from the frying pan into the fire. You're at a company in a better situation with at least some proof of market fit, or you wouldn't be earning any variable comp. Why jump to one with no proof?
I'm an early stage addict, so I get the attraction, but you've got pipe developed and have proven your own value. There just has to be some consideration for stability.

I don't think your asks are high in general. But at your current 175/350 plan, how are you going to do better at the new one? Mid-market OTEs are down in the $100/$200 zone. Ent is where 175/350 lives with PMF.

Why the inclination to hop?

Hunt4dealz

Executive

1

Enterprise Account Executive

Good call out. Reality is I don’t expect to be around another two months. Signs are pointing towards layoff. Was tasked with growing rev 3x. Will probably only achieve 2x. Pipeline can be handled by 1 rep not two (just being honest with myself).
My pipe is barely at my annual target -so assuming I close 100% I’ll hit goal but that’s a FAT chance.
Funding round was pushed back until 2024. Cash is running low.

Sales cycle is taking much longer than anticipated.

Great relationship with my founder but if I was in his shoes I’d have to make the decision to let me go.

oldcloser

Arsonist

1

💀

And that's just grown-up talk. Sounds like you have to leap. Been there.

CuriousFox

WR Officer

2

🦊

❤❤❤

GDO

Politicker

0

BDM

70/30, is it normal to have a higher base with early stage?

0

Enterprise Account Executive

What about the equity ?

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