Professional Documents
Culture Documents
Compensation Overview
Who we are
• Tim Wenzel
• Marlowe Rondoni
• Saar Gur
Agenda
• Common questions and surprises
• Options overview: A short test
• Options overview: Getting rich
• Expectations: Market data
• Negotiating an offer
Not covering
• How to evaluate a start-up
• Private companies that are not venture-backed (e.g.,
partnerships)
• Compensation as a founder or pre-VC funding
Question 1
• Should I expect a serious pay cut when I join a venture-
backed start-up?
An option is "in the money" when its price is less than the
stock's market value. Conversely, if the market value is less
than the option price, the option is said to be "underwater.”
Options Overview
Question 2
• Do I need to have cash on hand to buy my options when I
join a company?
Options Overview
Question 3
• What happens if I get fired? If I leave? Can the
company buy my shares?
Options Overview
Question 4
• How to I evaluate an option package?
Options Overview
Getting rich with options - Example
• Grant of 50,000 options at exercise price of $0.10
• 10mm shares outstanding, fully diluted
▫ 50,000/10mm = o.5% ownership
• 25% dilution before exit
• Exit valuation
• Salary information:
▫ www.jobnob.com
▫ www.payscale.com
▫ www.glassdoor.com
• CES/CMC