The War Room
Question
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Lower income for higher equity

Hi all,


With tech stocks dropping like bricks, I thought it would be interesting to hear your perspectives on foregoing OTE in return for higher equity during negotiations.

If I were to lower my OTE, what ratio to stock would make sense?


(salary expectation is 150k, I'm ok to live on 100k and lower my OTE by 50k, but I'd want more than 50k stock in return. focus is to ask large established companies rather than startups)


Anyone with experience in this would be highly appreciated


thanks

๐Ÿ’ฐ Compensation
๐Ÿ’ธ Investing
17
braintank
Politicker
3
Enterprise Account Executive
I prefer cash
TheIncarceration
Politicker
0
SDR Manager
I'm with you. I prefer guaranteed money as wellย 
MrMoneybags
Big Shot
0
Account Executive
this is what I thought starting out.

however with covid boom I ended up making more on stocks.(sold at top)

If I build up stock during the low stock season and in 3-5 years sell at top again I have my house paid off and the rest
braintank
Politicker
2
Enterprise Account Executive
Past performance is no guarantee of future results.
Sunbunny31
Politicker
3
Sr Sales Executive
Equity has only worked for me once - and then only enough to pay for most of my new Honda.ย ย 

Cash, all day, every day.ย  You can decide to put some of that cold, hard cash into an investment or two, if you want to live dangerously.
TennisandSales
Politicker
1
Enterprise Account Executive
i guess you can take the more risk more reward approach here but MAN is that alot of risk.ย 

to try and pic ONE company that will make up for losing $50K per year....thats a ton of risk hahaย 

id take the cash.ย 
SADNESSLieutenant
Politicker
1
Officer of โ™ฅ๏ธ
Cash is king. Equity packages are hazy as fuck and you never really know if you're getting boned in the end.
CuriousFox
WR Officer
1
Senior Account Executive
I want my money now. Nothing is promised.
Justatitle
Politicker
1
Mid Market AE
Unless the company is already public or literally a year away from IPO or acquisition equity is a huge risk whereas Iโ€™d prefer the guarantee in cashย 
Clashingsoulsspell
Politicker
1
ISR
Equity has only worked for me once - and then only enough to pay for most of my new Honda.
jefe
Arsonist
0
Head of Sales
Equity is always risky
MrMoneybags
Big Shot
0
Account Executive
more risk, more reward?

Keanu Reeves famously chose a profit split over more guaranteed income and made millions
Same applies with this
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
Equity -vs- Cash in Hand is always the risk with start-ups.ย ย 

I never focus on OTE since that is variable.ย  You can't live on the promise of OTE.
SaaSyBee
Politicker
0
Sales Content Writer
Eh, if it's real equity and not options, it could be a good gamble.ย 
ScopeCreep
Good Citizen
0
Regional Sales Manager
Large companies, like a Palo for example? Already IPO? Be more specificโ€ฆ
countingmyinterest
Politicker
0
Account Executive
cash > equity. VC markets are drying up, valuations are lower.ย 

I think companies that incentivize heavily with stock performance can expect a downturn in TC.

Equity is gambling imo, can only liquidate via secondary markets (equityzen/private syndicates), an IPO, or an acquisition.ย 

Too much risk as a salesperson imo
Coffeesforclosers
Notable Contributor
0
Director Sales and Market Development
take the cash and invest all over, dont be pigeon holed in a stock that could also tank and be all in on that one.ย 
AgastyaAdams
Politicker
0
Sales Development Manager
I was thinking of trading mu equity for cash for the same reasons mentioned in your post.