3 ms·
Take your pay cut (as a percentage, negative) and add 2/3 times your equity value at-current-valuation, divided by the vesting period, as a percentage of market
by michaelochurch 13y ago
Take your pay cut (as a percentage, negative) and add 2/3 times your equity value at-current-valuation, divided by the vesting period, as a percentage of market salary.
For example, if market is $125k, and you're making $100k + 0.2% of a company worth $100M, that's:
Equity is worth 200k over 4 years, or 50k/year. (40% of market salary.)
-20 (paycut) + 40 = 20
Here's how you evaluate it.
Below 0: Fucking awful. They don't respect you. Leave.
0 to 25: Mediocre, not interesting. OK for an otherwise attractive job.
25 to 60: Substantial but probably not life-changing equity. Typical for good contributors.
60 to 200: Real equity. They want you. They care if you work there.
200+: Founder-level.