| Topic Name: |
VC Compensation |
| Message Name: |
Re: Advice on disclosing salary history |
| Date Posted: |
08/02/2001 |
| In Reply To: |
Hi everyone,
I've been interviewing with a VC company (4 partners; $250Mil) for an associate position and they asked me about my salary history and expectations. I dodged that question last week, but they called and pressed again this week. They said they're a little behind in the recruitment process, that I'm their leading choice, but that they do need to know my salary history and expectations before they can make any decisions. Help! Any sage advice from anyone out there? How should I approach this and how much should I disclose? Also, what range can I expect for compensation from them? Thanks so much in advance! |
| Message: |
I assume by "associate" you mean an entry level/pre-MBA job.
Base salary should be above comparable analyst salaries for i-banking in the area, probably in the median range of 60-85k.
Bonus salary can either be in the form of straight cash bonus target, anywhere between 35k and 85k, or an arrangement with some portion of carry. Some firms have an "associate pool" that is based off carry. Co-investment on specific deals is also sometimes possible with small firms.
If you have weak salary history you can ask for pay that is normalized with the industry (see above). Another way to negotiate larger total comp is to offer to take a hit on the base salary in return for a much larger upside on performance-based bonus....a more win-win situation for the partners.
Personally I subscribe to the notion that salary is just about the *least* important thing for an associate. This principle changes of course if you are applying post-MBA and plan to put yourself on a partner track....carry negotiations are very important in that case.
What is most important for an associate position is the experience you are getting. If it's the right learning environment, the right people, and the right mark on your resume, the last thing you want to do is bicker about price and start your job on the wrong footing (especially at a small firm). I believe would have taken my job at close to minimum wage...I believe most of my peers at the firm would have done the same thing.
Best of luck with everything.
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