General Expectations

3 links
Holloway Guide ToEquity Compensation
Common questions covered here
What are the general expectations around salary and equity in private company job offers?
Should I use a competing offer as leverage to improve my offer from another company?
For early stage startups, what expectations should candidates have about salary and equity?

General Expectations

  • Many companies will give some leeway during negotiations, letting you indicate whether you prefer higher salary or higher equity.
  • Candidates with competing offers almost always have more leverage and get better offers.*
  • Salaries at startups are often a bit below what you’d get at an established company, since early on, cash is at a premium. For very early stage startups, risk is higher, offers can be more highly variable, and variation among companies will be greater, particularly when it comes to equity.
  • The dominant factors determining equity are what funding stage a company is at, and the role you’ll play at the company. If no funding has been raised, large equity may be needed to get early team members to work for very little or for free. Once significant funding of an A round is in place, most people will take typical or moderately discounted salaries. Startups with seed funding lie somewhere in between.
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