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Dwight Eisenhower posted:You are likely underpaid, but the answer to that is basically "it depends" in the typical BATNA fashion. If you're in an organization where people in management roles are few and far between and where your team members are only showing skill as individual contributors then you're probably worth another $30-40k over your skillset prior to demonstrating leadership. On the other hand if you've got a lot of middle management and someone can slot in to (mis)manage your team the day you leave and the people in those roles are not compensated drastically better than individual contributors then you're right on track in your company. Dwight Eisenhower posted:Given lack of feedback on OP I'm going to call this the last blocker to making a new thread. I see what you did there. 
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Mar 14, 2016 23:27
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I'm entering discussions regarding a new job at an IT company with 200+ employees. The position is as Director with responsibility for important projects, direct reference to the CEO, and as part of the central management team. The company recently got financing (think 30-60 million USD) from a private equity fund, so they a) seem pretty serious, b) are probably targeting an IPO in the next 3-5 years BATNA: I currently work in management consultant, have 6 years of experience, and I'm doing fine as is. But turbulent projects, long hours and a flattening learning curve mean that I'm open to new opportunities, even though I'd probably prefer a role with less hours than this one. However, there are both responsibilities and opportunities in the new role that makes it feel like I have to give it a shot. My dilemma: They will most likely offer a nice salary bump compared to my current pay — however, I'm already content as is. And considering the importance of the area of responsibility I'd get in reaching growth targets before the IPO, I'm going to ask for a small stake in the company on top (like ~0.5 - 1%). It's obviously a long shot, but I'm turned off by the thought of spending the next 3-5 years working hard, only to miss out on a potential IPO  On the other hand, the other members of management have been working on this for 7-10 years or something like that, so they have a head start. Does it sound unreasonable? They can definitely find other suitable candidates, but I think I'm a pretty good bet and with a minor stake, I'd be even more personally invested. How hard should I stand on this requirement? Would it be worth it to accept a lower salary, provided I get the stake, or is that just gambling too much on the potential success of the company?
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Mar 15, 2016 12:33
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The equity is worth zero unless they provide liquidity by either buying the stock back at some future date, IPO, or doing an M&A deal. You should think of the cash comp as all you're going to get and certainly don't lead with your chin by offering to cut your own pay for equity. Hard to say whether 0.5%-1% of equity in the company is reasonable without knowing what the current valuation is. I'd start by telling them you'd like an equity stake and then steering towards getting a reasonable number based on valuation and what other managers of similar seniority have. Note that since the rest of the management team has been there for some time they're going to have far more equity than you will likely get initially. On value, you've said the company's just raised $30-60m, which means they probably have a valuation of well over $100m, so a 1% stake feels a bit rich as an amount for walking in the door. For context, I recently got hired as an executive of a company (VP level) and got a bit under half of one year's base salary as the value of my initial equity allocation, and my salary is in line with peers ignoring the equity value. Over time, I'd expect to get a similar amount of equity issued each year as long-term incentive, assuming I continue to do a good job.
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Mar 15, 2016 15:48
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Unless the company doesn't generally offer any equity whatsoever to their employees, or your name carries a reputation, 0.5%-1% is way more than you should ever expect to get for being employee 200+.
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Mar 15, 2016 17:15
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Google doc is up, quick and dirty here: https://docs.google.com/spreadsheets/d/1nSJHNBoljONE0lu4Yi_a5JUOzv3cS5FbC6m8lxT9i3E/edit?usp=sharing Feedback appreciated.
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Mar 15, 2016 17:36
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KYOON GRIFFEY JR posted:Google doc is up, quick and dirty here: I tried to negotiate salary but was only able to negotiate bonuses, might be good to have a section for bonus originally offered/bonus negotiated? idk Also: "number you asked for" if you were forced to give a number upfront
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Mar 15, 2016 18:27
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Vulture Culture posted:Unless the company doesn't generally offer any equity whatsoever to their employees, or your name carries a reputation, 0.5%-1% is way more than you should ever expect to get for being employee 200+. Thanks for the input both of you - it's really helpful to get some perspective. As far as I know, all equity is currently held by 3 or 4 stakeholders (CEO, two other members of management and the PE fund). The growth case for the company is to increase revenue 5-10x in 5 years or so (I can't remember the details), so it's pretty ambitious. At the same time, the job in question would be one of the main responsible positions for realising this growth, so I'll keep pushing for equity, but potentially in the form of an annual bonus or some other solution that's contingent on performance. If equity is completely out of the question I'll obviously still consider the offer, but I'd rather stay at my current job and save my health, than spend 5 years busting my rear end night and day for a small salary increase. I'll keep you updated.
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Mar 15, 2016 18:34
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Blinky2099 posted:I tried to negotiate salary but was only able to negotiate bonuses, might be good to have a section for bonus originally offered/bonus negotiated? idk There's a field for incremental bonuses, but I could do start/end. I just don't want to make it too complex. I'm not sure I care about number you asked for - isn't the goal to get more money than what you get offered?
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Mar 15, 2016 18:47
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New thread up at http://forums.somethingawful.com/showthread.php?threadid=3768531 Might be useful to lock this thread and shove all conversation over there?
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Mar 15, 2016 20:15
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Blinky2099 posted:I tried to negotiate salary but was only able to negotiate bonuses, might be good to have a section for bonus originally offered/bonus negotiated? idk The categories usually tracked for this sort of thing are usually base salary, total cash comp (including bonuses), benefits, vacation, other non-cash comp (stock, etc.) Dwight Eisenhower posted:New thread up at http://forums.somethingawful.com/showthread.php?threadid=3768531 Agreed, let's get a mod to shut it down.
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Mar 16, 2016 04:29
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