Need help evaluating two offers
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)
Second one, more base meaning more cash in your pocket now, pre IPO company’s RSU are usually junk.
🤔
Company A is samba Nova systems?
No
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?
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.
How do RSUs expire?
Apparently so. Have not worked at a private company before and thats what the recruiter told me!
Company B
B
B
Options for B are at an exercise price lower than the current price? Is this common?
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.
This means the valuation has gone down, right?
B. I usually consider the base salary as the package for a pre-ipo company.
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.
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.