CFO Comp package for a startup?
Friend’s getting headhunted for a CFO position at a startup to take them public. Won’t tell me who it is; says they’re offering $2,000,000 in annual salary but no other compensation. No equity, bonus structure, nada. Wants to know if that’s ballpark or anything. No equity sounds like a huge flag to me - generally the higher you go, the more of your compensation comes from equity right? Any thoughts?
Suspicious. Should be $300K and then 1-4M equity over 4 years
Yeah - sounded like a crock to me. We’re discussing the possibility that they knew it was a BS offer he wouldn’t take just so they could say they tried but have someone local like a buddy of theirs in mind to begin with that they can then bring in as the only guy who’d take the job...and then sweeten the offer with equity to HIM instead of my friend.
$2M cash is unusual, even not many public company CFO makes that much in cash. Due diligence the company and the founder. Maybe there’s a reason he doesn’t wanna tell you.
If they are going public to raise money how can they afford to give $2m.
Sounds like a front for money laundering.
That was another thought we had.
Strongest possibility right now is they’re not really looking to go public vs get bought out. Just spitballing ideas here but that would make a little bit of sense for the no equity / high salary
Sounds like bs
Wonder what if your friend go in and then whistleblow.
This post reeks of bs
CFOs of F500 don’t get $2M base...
facebook does!
This is common for short term engagements within accounting. CFOs who take companies public or sell companies look better by not having equity at stake and for sales a CFO if the first person gone. Think of it as a contract position. Super normal.
2 million? Omg