Currently a VP at Morgan Stanley. Current TC: 185k. I have an offer from a fin-tech startup as an AVP. Offer is 120k plus stocks worth 160k vested over four years. Is this a good offer? If not, what should be the counter offer?
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Equity of a pre-IPO company is just paper money. The equity component should make up for the cash you are foregoing in some multiple to compensate for the risk. The earlier in its lifecycle the startup is, the more it is likely to fail, so the multiplier should be higher.
Why would you listen to some random person's opinion on the internet? These kind of statements make the other person uneasy and put them on the spot. It's your career; I can not answer for your life decisions. It's one thing to collect information or seek suggestions. It's completely other thing to outsource your life decisions.
To answer your question, though, for a publicly traded company, 1 currency unit of equity is worth less than 1 currency unit of actual money (because of 2 reasons: time value of money, and equity risk).
For a pre-IPO company, this is even more true as you can't even encash the equity (unless you can sell them back to the company, as is true for some startups)
The actual multiplier depends on how you expect the company to grow and be profitable. It's a decision you and only you have to make.
But one thing is for sure... The equivallent currency amount has to be bigger than the cut in cash you are taking.
The only exception to this is when you believe strongly that the company will do exceptionally well, and are willing to take that paycut as a bet in hope of a significantly higher return upon IPO.