"I've seen a new VP of marketing, a first-time CMO, get 1.5 points and total compensation of $270,000 to $300,000," Santinelli says. Founders Space is a startup accelerator incubator with advisors, investors, venture capital, funding, angels & VCs in San Francisco and Silicon Valley ... How much equity should I give a VP? Equity: Stock and Vesting Schedules. Don’t let your startup negotiation partner monetize it - ask for your full market value in cash unless you’re the type who likes to … Even if you really, really want your first VP of Sales job, if the product is completely uninteresting to you...just don't do it. A startup sales job sounds exciting, but the VP of Sales in a startup is a world away from a VP of sales at an enterprise company. In my opinion at least. Literally 100% failure rate. Equity Compensation Rules of thumb, guidelines, conventional wisdom & other considerations Frank Demmler. One of the most difficult decisions you will have to make as a founder is how to distribute equity among your co-founder(s) and earliest employees. 1,381 open jobs for Vice president sales in New York. Both 50/50 base to variable. Originally published February 12, 2014. Don't be that guy (or girl). Almost 10 years ago I was at a wedding for my good friend Jamie Tilotta (now Jamie Tilotta Green, one of the best executive search folks in the Valley) in Puerto Vallarta. For a head of engineering, top of that range; for corporate functions like HR or finance, near the bottom. Equity is often the most confusing and intriguing part of a compensation package at a startup. Thus, if you anticipate dilution or looking for someone to trade off base salary or compensate for taking more risk by joining your venture vs. a well funded or profitable competitor where they will still get at least 1%, I would adjust my offer accordingly. Get the double trigger. In a start-up, the VP Sales has to also be aligned to costs, not just revenue. How to Screen: This is a very hard quality to screen for – you should try to get a sense of their mission and goals in an informal interview. Founders’Pie Getting started correctly is critical! With that in mind, you need to know what to ask for, what not to. Startup equity is one of those things that it’s fair to say every startup founder without an MBA struggles with. And get moving. So long as he/she has a strong group of leaders around them. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. And so on. See our, Just Because Your Scale VP Didn't Kill You…. You can't fake this. Starting base salaries for a VP of Sales at these companies begins in the $160K-$175K range plus equity. VP level hire at a venture-backed, high-growth startup is typically in the 0.5% - 2.0%, with the understanding that you are there to own your vertical and build an organization that scales from product-market fit … Adapt. Tom Matta is the VP of sales at eShares, a software platform that allows investors and companies to manage cap tables and grant stock certificates digitally. How much equity should I ask for as a startup’s VP of Sales? But costs are critical when you’re adding sales reps and then a VP Sales ahead of profitability. Most startups have a 4 year vesting period with a one year cliff for the equity they offer you. At all. Because, lets be honest, if you are truly successful, your CEO, investors, etc, are going to to be VERY happy about it and they will reap some serious reward. But if you’re starting to freak out about who gets what slice of your startup pie, take a deep breath, calm down, and get ready for Startup Equity 101. The bottom line is simply to treat equity for what it is: a lottery ticket in a constantly changing business environment, littered with the corpses of glittering startup opportunities. Some companies will offer a choice of compensation packages, ranging from high equity and low salary to low equity and high salary. Adobe can pay that. We’re pre-funding right now. Great advice! As a jumping-off point, you can ask for the upper bound of both equity … Practical example of what not to do: You come in to a startup without a double trigger, crush it for 10 months, which prompts some bigger company to acquire you at 11 months, then they decide they don't want you on day 360. Because it's your ass.". So if you want to go hang out in places like that, then knock yourself out. The journey to founding and running a startup from an idea is indeed very exciting for entrepreneurs even though the process carries its own share of risks and tough decisions to make. It isn’t going to work in a startup. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. Other senior roles may warrant a half a percent. Is this about right? But if you are going to live, breathe, and own the next 4 years of this company's revenue life...you have to be all in. Pre-funding it’s usually much higher. "Primarily because there is no "sales floor" - but also because of the different skill set it requires," he said. But your founder just made $100 million. The older I get the more important this is. Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. One morning I got up early for breakfast and sat down with two of Jamie's friends, Tim Connors and Chris Noble. Startup salary and equity data for thousands of sales startup jobs. 3) Double Trigger. Let go of what you know. Startup equity incentive plans typically allow for grants of both flavors, with the specific situation determining which one is used. Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. I will say 1% minimum for a member of your executive team. This is a real thing. Salesforce can pay that. But it depends on what you’re paying this person. 3% on the high end. But again, it’s on a case-by-case basis. Seed-funded startups would offer higher equity—sometimes much higher if there is little funding, but base salaries will be lower. And it was my ass? You will get another one. I’m in a similar situation. If you come from a large software company, don’t implement their methodology. If you’re giving a full salary, then less equity is fine. It’s natural for a VP Sales not to care about costs. What are the dealbreakers? Most people don’t have to think about this stuff until it’s really important. In a billion dollar exit, you make $10 million. Equity negotiations can be a cause of disagreements and … Please see this FAQ about her services or contact her at (650) 326-3412 or at info@stockoptioncounsel.com.. For founders and CEOs who've never hired a VP of Sales, maybe this helps a bit too. “I’ve seen a new VP of marketing, a first-time CMO, get 1.5 points and total compensation of $270,000 to $300,000,” Santinelli says. Even if you are a first time VP of Sales you can't do it for less than 1%. 100%. Venture Deals is a great perspective on start-up funding models. The national average salary for a Equity Sales Vice President is $123,054 in United States. I was offered an equity position in the company. Some companies that are desperate will pay 500K but I think that's too much to pay a VP of Sales in a startup. What kind of team are you inheriting? Believe it or not, LinkedIn was not viewed by many to be a sure thing at this point. And if you are offered a VP of Sales job, whether it be your first or your last, it's a dealbreaker. Search Vice president sales jobs in New York, NY with company ratings & salaries. Again, tough to diagnose this early. As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. In my opinion at … Just to want a budget and a top-line number to meet. General range on equity: 1% on the low end. Outside influences do not know your business the way you do. You get nothing. Gut reaction: Anywhere from 0.5% to 1.5% of fully diluted equity depending on how core the VP position is to the company's success. Leo Polovets created a survey of AngelList job postings from 2014, an excellent summary of equity levels for the first few dozen hires at these early-stage startups. Because the company needs to be able to sell the appropriate shares to the employee once the options are exercised, those shares (1) need to exist, but (2) be reserved so that they are not sold to anyone else. Learn. Team Building & HR He said: "Well I hope you got percentage points in the company. If you get 5% there might be something wrong with the company. This can represent a significant piece of the round you just raised and comes with high expectations for internal hires that have worked tirelessly at much lower compensation levels. By using this site, you agree to this use. Employee will vest all remaining stock Sales & Marketing Joined Thermata in Feb. 2011 with responsibility for strategy. S on a case-by-case basis first time founders will be lower definitely not! Intriguing part of a compensation package at a startup, that 's just much... Michael Pici wrote for HubSpot that a typical salesperson would n't survive the. 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