Startup Professionals Musings

JULY 26, 2020

If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit. On the other hand, “competitive” salaries will likely go up, and health and retirement benefits will jump to a new level.

Cost 319

Cost IPO Exit Strategy Initial Public Offering 319

Startup Professionals Musings

SEPTEMBER 22, 2012

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Startup Professionals Musings

JULY 1, 2022

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

MARCH 29, 2015

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Both Sides of the Table

SEPTEMBER 6, 2010

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. We give out stock options. Do the harder work and convince them to join anyways – without the stock option bravado. ** Unless you really are Mark Pincus, Mark Zuckerberg, Ev Williams or similar.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

Up and Running

OCTOBER 19, 2021

Most job seekers understand that startups don’t have the resources to offer salaries similar to those at established organizations. If your team’s starting salaries leave something to be desired, consider adding equity to your compensation packages, as well. Offer unconventional but practical employee benefits.

Startup 127

Startup Salary Stock Options Employee 127

Startup Professionals Musings

DECEMBER 10, 2022

Another example is Facebook , maintaining motivation with food, stock options, collaborative office space, an on-site laundry, and a competitive atmosphere that fosters personal growth and learning with great benefits.

Stock Options 362

Stock Options Salary Leadership Stock 362

Startup Professionals Musings

SEPTEMBER 25, 2019

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Professionals Musings

APRIL 10, 2016

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Feld Thoughts

SEPTEMBER 2, 2011

They come up with two options: Hire Praveena as an employee and offer her stock options. Bring Praveena in as a founder and offer 10-20% of the company as stock. With the funds Jane and Dick have, a big salary is not possible. Praveena wants to invest $20,000 and get 20% equity.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Startup Professionals Musings

APRIL 8, 2015

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Women Entrepreneurs Can

NOVEMBER 23, 2023

These include health, dental, and vision insurance; retirement plans; paid time off; supplemental health and life insurance; and bonuses and stock options. Another popular retirement benefit is stock options, offered to early-stage companies before they go public.

Employee 52

Employee Stock Options Salary Hawaii 52

Startup Professionals Musings

MARCH 11, 2020

Another example is Facebook , maintaining motivation with food, stock options, collaborative office space, an on-site laundry, and a competitive atmosphere that fosters personal growth and learning with great benefits.

Product 322

Product Stock Options Salary Leadership 322

Startup Professionals Musings

OCTOBER 21, 2017

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

www.joelonsoftware.com

MARCH 24, 2010

When we decide to hire someone, the interviewers who were involved in the "hire" decision will sit down with the candidates resume and salary history and figure out what level they will start at. Some companies actually consider it a firing offense to reveal your salary! Its neat and egalitarian. Educational adjustments.

Software Review 48

Software Review Stock Options Salary Technical Review 48

The Startup Magazine

SEPTEMBER 28, 2021

For startups, another expectation that is common is for stock options to be offered as an incentive for prospective employees, and as a reward for those who stick around rather than seeing if the grass is greener elsewhere.

Stock Options 130

Stock Options Retention Salary Employee 130

Up and Running

MARCH 7, 2018

On average, it costs nearly three times an employee’s salary to replace them. If you cannot offer something close to the market rate salary for an employee, you should delay hiring until you can. Since benefits and salaries account for such a large portion of employers’ costs, it’s O.K. to offer non-monetary benefits.

Employee 91

Employee Startup Salary Hiring 91

Both Sides of the Table

FEBRUARY 23, 2015

” It was meant both as a call to those writing angel checks into other people’s companies that they ought to think about putting that capital toward themselves either by becoming a startup founder or (and this was my real point) by taking an under-market salary in a company where they can learn the right skills to do it in the future.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

YoungUpstarts

OCTOBER 24, 2017

Salaries of each member, and how salaries can be adjusted. Stock Option documentation. Every startup should have a written founder agreement, which should include the following points: The roles and responsibilities of each member. The percentage of the company owned by each member. How the sale of the company is decided.

LLC 168

LLC Startup Stock Options Cofounder 168

David Teten

AUGUST 1, 2019

Negotiate Your Equity And Salary With Stock Option Counsel Tips. Private company stock option grants: a founder’s guide to who gets what, when. How to assign stock options in early-stage startups. How does a private company decide on the size of a stock grant? Salary.com. Starting Work.

Private Equity 60

Private Equity Equity Due Diligence Portfolio 60

David Teten

SEPTEMBER 10, 2019

Negotiate Your Equity And Salary With Stock Option Counsel Tips. Private company stock option grants: a founder’s guide to who gets what, when. How to assign stock options in early-stage startups. How does a private company decide on the size of a stock grant? Salary.com. Starting Work.

Due Diligence 60

Due Diligence Stock Options Covenant Private Equity 60

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. I don’t want to pretend that stock-option grants have zero impact on you as a shareholder. Two-f **g-billion! What a disaster!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

AUGUST 28, 2009

Join because you’ll make a good not great salary. We do hand out stock options. After a while I starting telling people on the way in, “join because you’re passionate about what we do. Join because as we succeed so will you. And, oh, by the way. If they’re worth something some day that would be gravy.

PR 331

PR Software Review Ireland Germany 331

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? Salaries or hourly wages must be within reasonable limits set by the industry and matched by the competition, both regionally and for the same job classification. Or concentrate our available resources on just plain money as an attraction?

Employee 62

Employee Stock Options Salary Stock 62

Austin Startup

NOVEMBER 29, 2017

For the time being, you’ll spend 40–50% less on renting a home or office and 20–30% less on employee salaries, while not giving up that much in terms of the startup ecosystem. If you’ve just exited or realised stock options from a Silicon Valley success story, moving out of state is worthwhile. However, prices are rocketing.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Startup Professionals Musings

JULY 24, 2011

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Equity 234

Equity Advisory Board Stock Options Stock 234

Ben's Blog

OCTOBER 6, 2011

How do your salary and stock option packages compare to the companies that you compete with for talent? Do managers and recruiters follow up with candidates in a timely fashion? Do you compete effectively for talent against the best companies? Compensation. Do your benefits make sense for your company demographics?

Management 78

Management Development Team Review Stock Options Technical Review 78

Startup Professionals Musings

JUNE 20, 2010

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Stock 144

Stock Stock Options Advisory Board Startup 144

Berkonomics

OCTOBER 12, 2017

Cohen sets up an example where a senior position job candidate is stuck on a salary twice as high as the CEO is willing to pay, leading to a standoff between the two. Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options.

Employee 97

Employee Stock Options Dilution Salary 97

Up and Running

JANUARY 4, 2017

Most likely you will not be taking a salary for yourself in the first year (or three) of your new venture. Stock options, increased pay over time, a flexible schedule, and use of work resources are all great incentives for snagging yourself a talented new employee. See Also: How to Hire Your First Employee.

Small Business 122

Small Business Social Media Stock Options Employee 122

The Startup Magazine

AUGUST 6, 2021

If your vision is powerful enough, you can make up for this by offering recruits stock options. Then, even if their salary is low, your employees would have the option of selling these options at a later date, if the company succeeds. New businesses often do not have the capital to attract top talent.

Limited Liability Company 163

Limited Liability Company Silicon Valley Business Model Stock Options 163

Startup Professionals Musings

AUGUST 26, 2018

If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit. On the other hand, “competitive” salaries will likely go up, and health and retirement benefits will jump to a new level.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Berkonomics

NOVEMBER 14, 2019

The twist (“double arabesque”) is that your company management only then realizes what the person is worth, and makes advances to bring him or her back at an even higher salary and more inflated title. How to fit a returning superstar into your salary range. Additional stock options? The moral of the story.

Employee 48

Employee Salary Stock Options Stock 48

The Startup Magazine

JUNE 1, 2023

There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. After all, you’ve likely given your employees stock options which make them part-time business owners as well. they still aren’t profitable. And in times like this, give them more.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

View from Seed

AUGUST 6, 2015

When someone goes to work for a larger corporation or public company, the compensation package generally includes an annual salary, a performance bonus or commission plan, 401(k), and health insurance. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

View from Seed

AUGUST 6, 2015

When someone goes to work for a larger corporation or public company, the compensation package generally includes an annual salary, a performance bonus or commission plan, 401(k), and health insurance. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120