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$300-400k plus equity
Not unless the company is wildly successful OP.
Really depends on the nature of the business. Cybersecurity, crypto, AI, publishing etc.
Think non tech, utilities
The target equity will probably be $1-$2m at exit. The equity value is tied to the fund hitting their target exit
Probably this. A few hundred k cash a year and then $1-2M upon exit depending on a lot of factors. Good upside. But it might not hit.
I don’t see why a CTO at a utility company should make $1 mm on exit. PE based exits are hard nowadays. I think $400 K base is good. Rest is fluff. One end of the spectrum - but not everyone gets a fancy exit. 😀
In which case, why bother?
If they want to recruit heavy hitters from industry / consulting in order to drum up the pre-IPO valuation, then said heavy hitters should participate in that upside upon a successful sale or IPO.
If not, then they should stick with the Silicon Valley bros (or Houston oil bros maybe in this case??) and hope for the best.
How real is the equity? I wouldn’t count on it
Friend recently got an offer for 450k base plus bonus 50% plus equity for a 100m EBITDA PE portco.