Hey Guys, Hope you’re having great holidays. I was selected for a systems engineering position in TA. Any help on evaluating the offer and your thoughts on it are much appreciated. Below was the offer given by HR. Base - 130k Stock options- 10k vested over 4 yrs, strike price- ~$6.38 Joining bonus - 5k Location: Texas My current company offer as consultant: $85/hr Location: San Francisco YOE - 5 yrs I Wasn’t given option for negotiation and they asked me decide quick as the team wants me to start ASAP. Is it a good offer with the strike price around $7. Do you think the stock will go $40 in next 2-3 yrs. The HR said stock price will go easy between $40- 70 but I can’t find any info online. Thanks in advance !! @tripactions #tripactions
That's 10,000 shares / options, right? I would ask what the current private market value of a share is based on their last funding round, which I think was late last year or earlier this year. (Tripactions is still private as far as I know) Ie is the fair market value = the strike price? What HR thinks the value will be in the future is 🤷♂️
Yes, 10,000 shares. From my understanding, I have to buy at $6.38 over 4 yrs. But I feel it’s not worth if the share value doesn’t go over $40 which is uncertain in current scenario and after multiple rounds of funding. HR thinks it will go between 40-70 within 3 yrs but I can’t find any info online to back it up and lock myself for next 3 yrs in that company. Also said that the company is planning to go public in 18 months
There wont be anything online predicting the public market value of a private company a year or more from now (or if there is, it's just a guess). When you say not worth it, do you mean you need approx. $100k per year in equity comp on top of your base to make this a competitive offer? Again, I think you need to confirm what the current private value of a share is....and rely on that in evaluating offer if you have other offers to consider....
Okay. I feel that expecting it to be $40 after 4 yrs might be too much. I think getting ~$40k every year over 4 years will suffice for me. If I convert it to expected stock price it will translate to something around $22.5 after 4 years. I think the current stock price is around $8 but will check with HR.
Just because you feel ok with it doesn't mean your are being compensated fairly. Tech pays big money, make sure you get what your worth not what you feel you can get.
Just adding a data point, I was 1YOE, offered $135k base, 16k/4 options at ~$1 strike price for Software Engineer in Palo Alto
Is this is a recent offer.? I thought the strike price is fixed and can’t be changed.
Offer was from about 1.5 years ago
Stay away. Stock will NEVER even hit $20. Overvalued and many leaving.
Stock will have a hard time hitting $20 when you look at market cap of comparable companies.
I would counter with a bigger ask. Ask for 150 base and 1350 options. And ask for a larger sign on bonus.
I would ask them but I wasn’t sure about how to respond with the stock options. Have no idea on what would be it’s value after 2yrs and I don’t feel comfortable buying those stocks with my salary. This is first time I’m offered FTE so maybe I could be thinking of it the wrong way.
The more offered the better. You don't have to execute the options and buy them, but you should try and do your best to align with the most options possible.