Offer evaluation at LA unicorn
Got initial offer from unicorn in Santa-Monica Benefits are very nice, but financial side of offer is: Base - 175k Bonus 10% Stock options - worth $25k (told verbally) UPDATE below Position Principal Data Engineer (AWS). Total TC = 192K Currently: YOE: 15+. TC: 150k+20% = 180k Have a few day for accept it. I like what company is doing, but concerned about financial side of this deal. 1. How does community think, should I accept it negotiate for higher (how much %) ? 2. Stock options - should I much put attention on it ? Please share your experience!' UPDATE 180k + 10% 350k stock options in 4 years. TC around 270k Willing to accept. Thanks blinders!
Try to push them to 210k, you will have to pay taxes on your options. Regarding options. That’s bullshit. They will be diluted by 1/4 in the end. Considering your strike price is $1 and this startup will start their ipo in $20-30 you need to ask for at least 100k. Good luck!
Thanks ! I'm not the best negotiator, that's why I'm here ;) I have exactly the same thoughts +10% to offered TC, to have 210-215k. My concern is - base is pretty good for this area, but bonus is really small. Which tactics will works better - push base + bonus - push bonus only ? They did valuation recently, I have doubts that with IPO/acquisition value will be even doubled.
IPO Is a Russian Roulette! I doubt they will give you more base but they can give some extra bonus. Better to come with counter offers. Anyway, congrats on your offer!
Are you already based in LA?
Yes, I do not have to reallocate
I don't know about the LA market, but it seems super low for 15 YOE. For reference, I have 1 YOE after grad school with TC 195K (though in SF).
Could you DM me the name of the company? Looking to relocate to Santa Monica
Sounds low
You need to have waaaaay more stock options. That’s the whole point of joining a unicorn. The cash comp ain’t nothing to write home about, and right now even the stock options pale compared to FAANG. There should be some upside to taking a risk.
I appreciate your response. Never worker in companies which offers equity. Agree, 25k - is nothing, I can say it right away. What do you think reasonable amount of stocks to ask ? PS. I'm not willing to overwhelm them as well ;) Thanks.
Well, think about if you worked for a FAANG or any other unicorn — they would give you an initial grant of at least $700k worth of RSUs, vesting over 4 years. With your experience, your TC would be at least $400k per year. Now, also consider the risk factor of joining the unicorn — it may be unlikely, but there may be an economic downturn before IPO that affects its valuation for example. (If it’s Fair or Bird, that’s a possibility.) So, yeah...you should have some upside to joining a startup, considering that you can’t go liquid immediately (and time is money) and the risk involved. I’d ask for at least $1M from this unicorn (vesting over 4 years).
Ask for more base and maybe sign-on, but treat stock as worthless paper unless you think IPO or buyout is a sure thing.