It’s been about a decade since I was in a role where equity was part of the offer. Any tips on what to look out for?
Theflatpickinseller
Negotiating equity package - what to look for??
4
If you’re talking to a start up company there are some really important questions you need to ask or get clarity on.
1. Percentage of ownership.
-- What percentage of the company do the shares represent?
-- How many outstanding shares are there?
2. Valuation.
-- What did the last round value the company at?
-- What is your strike-through price?
3. Stock options.
-- Do you allow early exercise of my options?
-- Am I required to exercise my options within 90 days after I leave or am terminated? Does the company extend the exercise window of the options of employees that depart?
4. Vesting.
-- Are all employees on the same vesting schedule? Is there any acceleration of my vesting if the company is acquired? — lobby for this if you can, very important if you think the company will get acquired vs. actually IPO.
-- Does the company have any repurchase right to vested shares?
1. Percentage of ownership.
-- What percentage of the company do the shares represent?
-- How many outstanding shares are there?
2. Valuation.
-- What did the last round value the company at?
-- What is your strike-through price?
3. Stock options.
-- Do you allow early exercise of my options?
-- Am I required to exercise my options within 90 days after I leave or am terminated? Does the company extend the exercise window of the options of employees that depart?
4. Vesting.
-- Are all employees on the same vesting schedule? Is there any acceleration of my vesting if the company is acquired? — lobby for this if you can, very important if you think the company will get acquired vs. actually IPO.
-- Does the company have any repurchase right to vested shares?
Depending on the role will depend on the amount of equity, normally.
a VP of Sales should expect between 1%-5% and an AE should be looking at 1%
a VP of Sales should expect between 1%-5% and an AE should be looking at 1%
@Smithy 1% of what? My OTE? Or current projected value of the org?
if we are talking equity, then it should be 1% equity in the company, Dude!
This depends on the size of the company
This depends on the size of the company
Lol - yea that’s what I figured.... seems like a lot though. Good to know! Thanks man
If you join a start up and they want you to be 'committed they will give you equity and outside of an exec role, you can't really expect more than 1%, but if you stay and get a buy out, that can be a lot of money.
There are also other things to consider like options. preferred stock and double trigger. I'd suggest you look into all of these if you are in this type of negotiation.
There are also other things to consider like options. preferred stock and double trigger. I'd suggest you look into all of these if you are in this type of negotiation.
Make sure that you don't get megafucked on dilution. Make sure your strike price for options is fixed and can never be moved for any reason.
Commenting here cause I'm also curious what the answer is as I'm in the same boat
I'm inexperienced in this but I know that you should be looking to understand the vesting schedule, ie how long until you own the option to purchase your shares ect.
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