Choose the offer: (1) above market rate role, paid in all cash (no equity), significant 2-3 year business uncertainties, start up atmosphere (no processes / structure, very weak team), and potentially poor exit opps due to niche industry and bad press, or (2) market rate role, paid in cash / equity combo, good mid- and long- term biz and career upsides, start up atmosphere (strong team), and likely good exit opps given positions role and responsibilities?

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Posting as :
works at
You are currently posting as works at

Do you seriously need to ask

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Offer # 1 is offering $70K more annual cash (salary + bonus) than #2 though. That feels like it could be a life changing difference. No?

(2)

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2 easily

Clearly 2

Did you overly devalue #1 here though with the negative sentiment, causing the reader to gravitate to #2 based on the positives?

I don’t think so. # 1 pays all cash and above market rate for the role. Thats a pretty big pro versus # 2 where market rate comp is split between cash and equity that you have to wait to vest. So it’s trading cash today for maybe a bigger payout tomorrow. The other stuff are facts. # 1 is a hot mess with weak players which is why they are offering above market rate in cash. And they’ve had some bad press around company practices which has turned some others off. # 2 is better organized with stronger players and a better financial outlook over a longer term period. It will also look better on a resume since it’s a clearly defined role. But even if their stock goes up in value at a 7% annual rate, # 1 is still more lucrative because I’d invest the excess cash in an index fund and the time value of money plus compounding makes it really attractive. There’s a real risk though the cash cow would only last for 3 - 5 years because they would be more established at that point and could likely hire someone for cheaper. Then I’m back looking for another role and having to explain how putting out dumpster fires for those years will translate while getting a side eye for working for such a company with bad press. Versus no. 2 where I could likely stay 10 years +.

Above market isn’t specific enough. Is it 10k above market? Is it twice market? All else being equal, obviously 2 is the choice, but no way to make that decision without knowing the magnitude of the above market rate

I’d agree with D1. Only other consideration would be trajectory within each firm. Consider what your comp would be 5 years from now at each of the firms.

Thanks All! I told #1 to make it $360K cash a year plus 6 months severance. They are giving it thought and coming back to me next week. Appreciate all the thoughts.

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