I am currently negotiating a compensation package and part of it includes stock options. What other information do I need to evaluate if the equity component is a good offer ? It’s a ~40 person company and I’ve received the the number of options, most recent valuation, and current strike price. I was also given a dollar range that I can “imagine” the share price would be (I think they were trying to help me do the math without it giving away too much)?

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

Also, don’t buy the “what the price would be in XX years” story, look at the last round’s valuation - there’s a reason the company had that valuation, all the risks and hopes are already priced into that by investors.

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See what the full cap table looks like. How many total shares? What are the preferred shares preferences? How many common? How much of the employee option pool is left? Are there opportunities to earn more options each year, based upon your performance?

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Depends on lots of things, like size of company, level of funding, openness / transparency of the CEO with employees. Most will try to sell you on a number of shares, but that’s irrelevant because the cap tables all vary. 100 shares out of a pool of 10,000 is great compared to 1000 shares out of 1 million, etc. You also should know the vesting schedule and any change of control clauses that forward vest your shares. However, all of this is moot if you don’t get the offer. So for now, just concentrate on impressing them. Let the recruiter know that you don’t anticipate compensation getting in the way and move through the interview process. You can play hardball later, once they’ve zeroed in that you are their top choice.

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UPDATE (RE: SoCal Assistant Controller Interview)

So after two weeks of waiting (and giving up on the idea of getting the job really), the recruiter got back to me.

They said due to month-end and quarter-end close they were busy and couldn’t get back to me as quickly for a “good update”.

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