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> I'd rather have shares At this stage you're not going to get shares, unless they really want you. What you should be getting is options (with strike price a
by hbrn 4y ago
> I'd rather have shares
At this stage you're not going to get shares, unless they really want you.
What you should be getting is options (with strike price at current/last valuation).
Think about how likely is the exit and where you expect the value to be in 5 years. For example, if company doubles in value, you will get to exercise your 1% for €200k and sell it for €400k (assuming there was no dilution). Not bad, but probably not the life changing event you were expecting, you can get roughly same value by getting a salary that is 40k/year higher with lesser risks.
Of course it gets very different when you expect the valuation to grow 100x. But that requires way more than simply expanding into another country.
- throw181428 4y agoYou're assuming that it would be valued 40M at exit, right? How would it be different from them giving me 0.5% instead of 1% but at "face value"?
- hbrn 4y agoCorrect. I doubt they can just give it to you at face value. Are there other employees that were incentivized with stock/options? Were there investment rounds? Were you with the company from the beginning? As a CTO, you can be entitled to higher compensation (both cash and stock), but not special treatment.