I'm interviewing at a growth stage (Series B) start-up that seems to be doing well. Recently, the recruiter was explaining benefits to me and mentioned that they don't yet offer bonuses (stock or cash). I wasn't sure what to make of this comment - I've only worked at later stage+ companies (Series D+) that offer bonuses. Does anyone know at what stage start-ups typically start offering bonuses? Do Series A companies offer bonuses, or do bonuses happen later, such as the Series C? Does it depend on the company / certain factors (if so, which)? I'm trying to suss out whether this is a red flag or common practice. Thanks in advance! #comp #bonus #startups #product #hr #benefits #startup #equity
Some offer it from the beginning. Some won't ever offer them.
I'm not an expert, but as I understand it, the size of the "option pool" (the shares put aside for employee incentive stock options) should have been determined as part of the A round, and may have been modified as part of the B round. The fact that they're not handing out options yet doesn't mean that there isn't an option pool. Ask how many shares there are outstanding after the Series B round, and what the post-money valuation is, and what the size of the option pool is, either in total shares or as a percentage of total shares. They may or may not answer the first two, but they should be willing to answer the last one.
you misread the question
Thanks for sharing these insights! To clarify: the company is offering equity as part of the offer package (if I get an offer). However, the recruiter mentioned they do not offer cash or equity bonuses based on performance reviews yet. I'm trying to understand whether a lack of performance-based bonuses is the norm for growth stage start-ups or not.
They need good feed of revenue. No one is going to do that in 2024.
It really depends on their compensation philosophy overall, there is no stage that startups start offering bonuses, and many companies that are not startups have never offered bonuses and never will
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even D is early for bonuses