Morgan Stanley vs a startup

Oct 14, 2021 7 Comments

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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TOP 7 Comments
  • Tesco / Eng
    SuprPsycho

    Go to company page Tesco Eng

    SuprPsycho
    This is a shit offer. Don't take it, unless you value the work experience there more than the money (which I doubt)
    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.
    Oct 14, 2021 3
    • Tesco / Eng
      SuprPsycho

      Go to company page Tesco Eng

      SuprPsycho
      "If they don’t offer me what you suggest, I won’t take it"
      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.
      Oct 15, 2021
    • Thanks for such a detailed answer. Appreciate it.
      Oct 15, 2021
  • Google
    eFRv33

    Go to company page Google

    eFRv33
    Morgan is terrible but your new offer sucks too. I would prioritize leaving Morgan, it’s a terrible place to work and the pay is is worse.
    Oct 23, 2021 0
  • Uber
    baconit

    Go to company page Uber

    baconit
    How is this a good offer? They are offering you lesser than what you are currently making. The offer you have per year winds up being 120+40 = 160K
    Oct 14, 2021 1