I am in the process of negotiating compensations for an Account Executive role at a technology startup company, and wanted to know if asking for a an equity stake on top of my commission plan is conventional for this mid-level sales position.
Any opinions? Thanks!
It’s always acceptable to ask for equity for a job at a technology startup. Doesn’t mean you’ll get it.
In most cases, you’re talking about token options that vest after a year.
Thanks for the reply but I like to know if it is possible and common for a Sales person to acquire equities in a startup without being a senior level member.
There’s no rules, and not even a whole lot of common practices, for tech startups and compensation. If you want it, ask. They’ll probably manage to give you something. Expect it to come at the cost of other compensation.
Google’s cook from way back when is now filthy rich, so lower ranks than you have done it.
It used to be more common in the 1990’s. Most professional level people at tech startups got stock options back then. They aren’t as common now because they usually end up worthless or near it so people want real cash now rather than take a risky bet that probably won’t ever pay off substantially. You can certainly ask for them if you really believe in the future of the company.
It doesn’t cost them much to give you a token amount of stock options so it is up to you to figure out what the expected value of whatever they offer will be in the future. Unfortunately, that is an impossible to really know for sure. In other words, don’t just trade 10K in salary for stock options unless you have reasonable confidence that they will be worth substantially more than that in the future.
I’d say as a salesperson your contribution will be absolutely critical in the survival of a startup. If you’re confident you can deliver I see nothing wrong in asking.
That’s what usually happens, you have to give up something for the equity. And if you’re working without a contract you could end up high and dry. Which is where you could end up even if you have a contract because startups are not a sure thing. I think in a sales position you’d want to establish your value to the company first. Then you have something to bargain with.
If I were starting a company, I’d be happy to hear a prospective employee wishing to have an equity position. That said, I’d use it as a bargaining chip towards a lower salary or somesuch. I see no real downside in asking.
I am unfamiliar with the tech industry, however.
Usually something like 0.02% stake vesting over 4 years is about what you would expect.