I am negotiating an offer for a role of Head of Partnerships for a late stage startup (last valuation of ~$5B). Its going to be a VP level role. What is the equity range that I should expect? Currently they have offered stock options worth $200k vesting over 4 years.
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- Daimler noDoubtmoreCounter with 400K and see what they say. Also, understand that they can do 3/1 reverse stock split just before IPO like Redfin did.
- Well sure, but that would happen anyway, in the sense that if the reverse split wasn’t made the stock would get listed at 5 (overpriced) and then drop as 1.5 as well, so in the end the drop in market cap should be the same. I don’t exactly see the correlation with the split event.
- It's just mental thing. Often startups would offer X number of options at a strike price of Y. The employee may think that the company will go public at $10-$20 range(like most startups), and expects he will be millionaire with worth between 10*X to 20*X. Just before the ipo the company does a reverse split of 1 to 10 ( to bring share price between 10 to 20), and the employee equity is now 1*X to 2*X.
Happened to me at roku, 6 to 1 reverse split.