SaaSam

Account Executive

Is this any good?

I have 0 experience in dealing with equity and even the terminology isn't all that clear to me. Recruiter has been on me about making a change, I'm really not looking for a change but never say no to a great opportunity.

Essentially compensation is the same as current company. Average deal size is smaller though. The one thing that they offer that I don't have currently is equity. This is directly from our conversation regarding the equity offer. Can ya'll shed some light on this?

"Our standard equity package is 5,000 shares which is roughly a $25-$30k value today. The equity package is on a 1 year cliff, 4 year vest timeline."

💰 Compensation

🤝 Interviewing/Offer

18 comments

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TennisandSales

Politicker

Head Of Sales

a one year cliff means you have to stay at the company for 1 year in order to exercise your stock options.

4 year vest timeline means that you will gain control of those 5000 shares in 4 chunks every work anniversary (normally)

so if the grant is 5,000 shares

every year you will have access to 1,250 shares. You then can ether buy them or hold them. But you will have to actually spend your own money to get the benefit.

Also, there is normally what is called a "strike price" which means you get to buy the shares at the price the shares were at when you start (thats normally when the strike price is calculated)

SO

if the stock cost $100 per share when you start, then in one year it goes to $125 then you get to buy 1,250 shares at 100 instead of 150 and will have an immediate gain.

In my opinion, stock is a NICE to have. I would not leave your current employer (if you are happy) just for stock options. This is not the most attractive stock option package I have seen but seems fairly standard.

if the price of the stock goes down below the strike price then your options are worthless, until the stock goes back up. THis has happened to me.

E_Money

Big Shot

💰

Couldn't have said it better myself!

My advice- equity is nice, but it doesn't pay the rent. Negotiate higher salary unless you're willing to bet your compensation on company success

bandabanda

Tycoon

Senior AE Mid Market

^ TRUTH

DungeonsNDemos

Big Shot

Rolling 20's all day

Lol let's pin this (or make a Bravado Academy post) so people can learn the basics of equity offers.

TennisandSales

Politicker

Head Of Sales

i dont even know how to make a bravado academy post haha

SaaSam

Politicker

Account Executive

Thanks for clarifying. What at first gave the impression of something I would want now appears to be a bunch of overhyped smoke and mirrors.

UrAssIsSaaS

Arsonist

SaaS Eater

I wouldnt say its overhyped smoke and mirrors but its a calculated risk with a low probability of hitting, especially if the company is really young.

poweredbycaffeine

WR Lieutenant

☕️

Equity won’t pay you today, tomorrow, or maybe ever. Bump up the base, especially in light of lower ACV (unless the team is over performing across the board).

Pachacuti

Politicker

They call me Daddy, Sales Daddy

i could wipe myself for a year with all the worthless options I've received.

braintank

Politicker

Enterprise Account Executive

Simpsons did it ;)

braintank

Politicker

Enterprise Account Executive

Don't leave for equity alone.

UrAssIsSaaS

Arsonist

SaaS Eater

Didnt you move into a new role within the last 6 months or so?

Also @TennisandSales broke it down perfectly for you. What funding round is this potential company in?

SaaSam

Politicker

Account Executive

I did, and I really like it here too. Would take a lot for me to want to leave but I'm not stupid enough to completely rule out the possibility. So far where I am at has been the best thing for my career.

UrAssIsSaaS

Arsonist

SaaS Eater

Don't be short sighted here. Re-read the last sentence and tell that recruiter bring the bag or you politely decline.

bandabanda

Tycoon

Senior AE Mid Market

What urass said. Sounds like you’ve got your answer, follow your gut this time.

DungeonsNDemos

Big Shot

Rolling 20's all day

The grass is not always greener. I wouldn't move just for equity.

CuriousFox

WR Officer

🦊

I'm a fan of getting my money up front ie base pay.

SADNESSLieutenant

Politicker

Officer of ♥️

I personally have never been a huge fan of this equity structure, especially having to buy it, when my time came around i didnt have enough dough to vest my shares so i was just like 'merp'

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SaaSam

Is this any good?

18 comments

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