Hi everyone,I’ve lurked on this sub for a while and know that there are some talented people around so thought I’d ask for some advice!I’ve recently been asked to draft a proposal for my own compensation package at a startup that has brought me on. The founder asked me to do this so that I would be able to assess what would make me happy and keep me motivated, and we could use that as a foundation for negotiation/discussion to get to the final package.Here’s some context:The startup is in the private equity investment space, is around a year old, and currently has two cofounders. Cofounder #1 brought me on around 2 months ago, and we’ve been working together to primarily focus on developing one of the core products, but we figured out fairly quickly that as an early stage start up it also makes sense for me to have more hats on so I’ve been working on marketing, building out another product, and website related work as well. The goal is once we launch the full set of products (in a few weeks time), that I’ll be focused on delivery of the product that I was brought on for.Before all of this, we wanted to test out the waters so I worked with them based on a heads of terms agreement which basically said that I’d do work for them in return for cash on delivery, cash postponed until funding, shares, and share options, the details of which would be worked out once we were sure the fit was good.That’s where we are now, and so now I have to work out the details surrounding this agreement which I think are fair and will mean that I’m happy as the compensation and working conditions meet my requirements.However, I’m fairly new to the startup world and so I don’t have a good sense of what is fair and what isn’t, and I know that I need to consider the financial situation of the startup in my proposal.I’ve currently just put together a spreadsheet model for converting my industry standard salary into a mix of cash, cash postponed, shares and share options based on their current valuations (which is a bit of a guess). In addition I’ve added a few intangibles such as work flexibility and training etc...What would be helpful is if someone had any guidance on say a rough % equity I should be aiming for (vesting over a time period of course) as an early stage member of the team. Additionally if there’s any advice for how to assess the split that would be helpful as well.Of course, any and all advice is appreciated, and if there’s any clarifying information to help make a response please do ask.Thanks for taking the time to read this, and thanks in advance for any responses. see hubwealthy.com/wealthy
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