Negotiation: Ratio for Exchanging Base to RSUs
I'm negotiating an offer from a pre-IPO company that I think is going to do really well in the next few years. In order to maximize my total compensation and bet on their success, I want to negotiate a lower base pay in exchange for much more equity. What's a reasonable ratio for doing this... -2 base for +3 equity? Or more aggressive? EDIT: to be clear, this company is profitable and is close to IPO, not some unknown untested business.
I use $1 in base salary = $1*5 in rsu value for risky ones and $1*4 for fang
I’m not sure I agree with your risk assessment/tradeoff. A startup has a sizeable chance of RSUs being worth zero and Fang is much less likely to happen
I should have said at least 5:1. I was thinking pre-ipo startups like Pinterest or Airbnb, not a series A startup
Irrespective of what you think how it’s going to do, it still is a risky gamble.