| Topic Name: |
Stock Options at pre-IPO company |
| Message Name: |
Pay is too low for experience level. |
| Date Posted: |
09/28/2000 |
| In Reply To: |
I am currently at a Big 5 consulting firm. I have been looking for a position in an Internet-focused consulting firm, and was recently extended an offer. The base pay is low ($50,000 per year; I currently make $82,400), but there are options and a bonus structure involved. The company is pre-IPO. I am looking for a way to evaluate the options and determine if the base pay cut is worth the risk. I know that there is no definite thing, but this industry is not doing well right now either. Any experiences out there that could help me out? I am little undertain as to what to do. Also, anyone know a good place to get a primer on equity compensation models? Thanks. |
| Message: |
You are correct that you need to examine the entire compensation package (mix of salary, bonus, and options). Also, the difference between pre-IPO options and post is significant. Having said this, however, I think that $50,000 is much too low for someone with your experience level. It is reasonable to expect a 15-25% pay cut when introducing equity into your compensation package, but your reduction is upwards of 40%. Not only do I think you can receive a more reasonable offer at some other Internet consultancy, but I think this firm is low balling you for some reason.
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