Series A CTO Negotiation
I have been offered a CTO position at a Series A startup with 45M valuation in San Francisco. I currently work as director of software at Cigna in St. Louis and make 225k total cash comp with ~20k in equity split between options and RSU. COL is 128% higher in SF. What should be the minimum salary / equity i should accept that is in line with this role? Research i have done says 1-3% equity, really unsure about the salary especially. #startupoffer
Also take into consideration the increased state income tax, sales tax (like 8.5% which I’m sure is more than Missouri), and prices on groceries and food. (For example, a decent pizza can cost you like $20 or something.) I have no idea about your YOE or background, but based on everything you told me, I’d say even 300k+ would be fair, but it depends on how much money the startup is making/burning, and how much it raised. Usually startups are cash-strapped so high 200s might be good too. Just make sure the whole deal (with equity and some risk factored in) is roughly comparable to a management position at a good company.
Thanks this helps!
Op , did you received an offer ? Or did you accepted ?
COL is way higher than you think. Moving from the far north Bay Area to the Silicon Valley. Rent was 2x, I’d imagine St Louis sticker shock would be much worse. I paid 4500 rent for a 2 br .townhouse style apt. You can find cheaper If you like funky or like being next to a freeway etc. You need around 200k base to pay bills. Good luck.
Thank you! I was looking at rents and they are totally insane. In STL I live in 2500 sq ft for 1400 a month mortgage lol so I know I am not going to get the same sized place.
Look at the housing prices. It's probably 4x more expensive, per square foot, in an average San Francisco Home vs. the nicest neighborhoods in St. Louis (e.g Lafayette Square). Also get ready to pay $35/person for a lunch that's not fast food. The only way to get a house, usually, is to win it from a lottery ticket which are startup options. If they gave you a $400K base maybe you could do it the old fashioned way, from salary.