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B is kinda true a priori. It's easier to negotiate A should be negotiated in relationship to ownership and responsibility. You should get into the head the hiri
by yowlingcat 8y ago
B is kinda true a priori. It's easier to negotiate A should be negotiated in relationship to ownership and responsibility. You should get into the head the hiring manager in question and figure out what's the max/min range to motivate a candidate to do the job properly. That could be anything for single digit percentages for senior ICs at an early stage company to 50% for a pre funding cofounder to a couple bips for an IC at a series D medium sized company to a sizable fraction of a percent for an executive at a series B. Trying to value illiquid options as if they were fungible in cash is a fool's bargain. Reject it. They have value, but they're different.
- toomuchtodo 8y agoIn your example, what would you consider an early stage startup? At what size org would 20 basis points be reasonable for a senior IC?
- yowlingcat 8y agoSorry, I should have been more specific -- I meant seed stage. I think you'll see 20 basis points for a senior IC around post Series A/B depending on the company and how they've set up their option pool, as well as the senior IC. At that point, 20 bips is material enough to be non-negligible if the company grows well enough to the next raise, but probably not enough to be thought of as cash in the lifetime of that employees tenure (on average, anyhow). At that point, cash comp should be on par with median salary, which is tier 4 and below for most ICs* *I'm putting FANG into T1, the next tier down of liquid companies into T2, large pre-IPO companies into T3, and everyone else into T4 -- the interesting part obviously is that company salary tiers can and do obviously change if/as companies grow successfully.
- toomuchtodo 8y agoThank you!