Need help evaluating two offers

Amazon NextJobMe
Jun 2, 2018 18 Comments

I have the below offers from two private companies in the bay area.

Company A:
Base: 170k
RSUs: 50k units each worth $10/share
RSU window: Spread over 4 years
RSU expiration: 10 years
Yearly Cash bonus: No
Yearly base increase: Yes
Yearly equity refresher: Yes

My thoughts:
I believe this company will IPO in the next few years. Valuation seems to be a bit high and I consider the shares to be worth between $6 to $7.

Company B:
Base: 220k
Stock options: 50k units at an exercise price of $6/share (used to be $10/share few years back).
Options window: Spread over 5 years
Options expiration: 10 years
Yearly Cash bonus: Yes (10-20%)
Yearly base increase: Yes

My thoughts:
I don't think this company will IPO in the next few years.

Assuming everything else (work, engineering culture etc...) are similar in both the companies, which offer do you think makes sense financially?

Current TC: 190k (4 YOE)

comments

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TOP 18 Comments
  • Airbnb / Eng Eeerbci
    Go with the one that you believe will have the better equity 10 years from now. Also, negotiate. Tell company A you’re on the fence because company B offered you 220 in base. They may get you closer to that number.
    Jun 2, 2018 1
    • Amazon NextJobMe
      OP
      Did one round of negotiating with Company A and upped the base to 170k. Was told this was the maximum for the level I was offered.

      "10 years from now" - That is a good suggestion. 10 years from now, I believe Company B will be better positioned in the market and would have its valuation increased.
      Jun 2, 2018
  • Oracle / Eng otLQ15
    Second one, more base meaning more cash in your pocket now, pre IPO company’s RSU are usually junk.
    Jun 2, 2018 1
  • Airbnb / Eng Eatrium
    Options for B are at an exercise price lower than the current price? Is this common?
    Jun 3, 2018 3
    • Amazon NextJobMe
      OP
      My bad, did not word it right. It seems it used to be about $10 few years back and the current fair market value is $6.
      Jun 3, 2018
    • Nutanix / Eng
      ErlicBauch

      Nutanix Eng

      PRE
      VMware, NetApp, Nvidia
      ErlicBauchmore
      This means the valuation has gone down, right?
      Jun 7, 2018
    • Nutanix / Eng
      ErlicBauch

      Nutanix Eng

      PRE
      VMware, NetApp, Nvidia
      ErlicBauchmore
      That isn’t a red flag?
      Jun 7, 2018
  • Amazon YV11
    So it seems you are making decision based only on financial terms. Do you know which company would provide you better opportunities to shape your future?
    Jun 2, 2018 1
    • Amazon NextJobMe
      OP
      I have few other offers but have narrowed it to these two companies based on work, learning opportunities and growth. Between these two, wanted to get different opinions based only on numbers.
      Jun 3, 2018
  • Microsoft IEjP42
    How do RSUs expire?
    Jun 3, 2018 1
    • Amazon NextJobMe
      OP
      Apparently so. Have not worked at a private company before and thats what the recruiter told me!
      Jun 3, 2018
  • Intel Arkn
    Company A is samba Nova systems?
    Jun 2, 2018 1
  • Palo Alto Networks / Eng
    UUBc33

    Palo Alto Networks Eng

    PRE
    500 Startups
    UUBc33more
    B. I usually consider the base salary as the package for a pre-ipo company.
    Jun 3, 2018 0
  • Apple Tycfgdf
    B
    Jun 3, 2018 0
  • PayPal idlygajaa
    B
    Jun 3, 2018 0
  • Veritas sancoo
    Company B
    Jun 3, 2018 0

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