MrMoneybags

Account Executive

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

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21 comment

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braintank

Politicker

Enterprise Account Executive

I prefer cash

jefe

Arsonist

🍁

C.R.E.A.M.

TheIncarceration

Politicker

SDR Manager

I'm with you. I prefer guaranteed money as well

MrMoneybags

Big Shot

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

Enterprise Account Executive

Past performance is no guarantee of future results.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Equity has only worked for me once - and then only enough to pay for most of my new Honda.

Cash, all day, every day. You can decide to put some of that cold, hard cash into an investment or two, if you want to live dangerously.

TennisandSales

Politicker

Head Of Sales

i guess you can take the more risk more reward approach here but MAN is that alot of risk.

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

id take the cash.

SADNESSLieutenant

Politicker

Officer of ♥️

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

🦊

I want my money now. Nothing is promised.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

Pass on that plan

Justatitle

Big Shot

Account Executive

Unless the company is already public or literally a year away from IPO or acquisition equity is a huge risk whereas I’d prefer the guarantee in cash

Clashingsoulsspell

Politicker

ISR

Equity has only worked for me once - and then only enough to pay for most of my new Honda.

jefe

Arsonist

🍁

Equity is always risky

MrMoneybags

Big Shot

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

They call me Daddy, Sales Daddy

Equity -vs- Cash in Hand is always the risk with start-ups.

I never focus on OTE since that is variable. You can't live on the promise of OTE.

SaaSyBee

Politicker

Founder

Eh, if it's real equity and not options, it could be a good gamble.

ScopeCreep

Good Citizen

Regional Sales Manager

Large companies, like a Palo for example? Already IPO? Be more specific…

countingmyinterest

Politicker

Account Executive

cash > equity. VC markets are drying up, valuations are lower.

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.

Too much risk as a salesperson imo

Coffeesforclosers

Notable Contributor

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.

Gasty

Notable Contributor

War Room Community Manager

I was thinking of trading mu equity for cash for the same reasons mentioned in your post.

MR.StretchISR

Politicker

ISR

I prefer cash

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