Preview — hit “Analyze my offer” to lock in your results.
This offer is below market, so it's worth pushing back.
You'd earn about $130,000 a year in cash if you hit your full bonus, which isn't guaranteed. We don't count the shares as pay because their real value is uncertain until the company is sold or goes public.
What your shares could be worth
The company is valued at 20.0 times its yearly revenue, or about $2 per share at the investor price.
The "on paper" number is simply your share of the company multiplied by its latest valuation. What you'd really take home is usually lower, because investors are paid back first in a sale, you may need to pay to buy your shares, and taxes apply. Your stake also shrinks as the company raises more money, which we estimate at about 20% per round.
Watch-outs
- Common stock is the type most employees get, and in a sale it is paid only after investors get their money back, so ask how much investors are owed first before you value your shares.
- We leave equity out of your yearly pay because the paper value assumes the company sells at today's price and pays everyone equally, which rarely happens, so think of it as a lottery ticket rather than income.
Your negotiation playbook
"I'm excited about this. Based on market data for this role, stage and location, I was expecting a base closer to $172,500. Can we get there?"
"Given I'm joining this early, I'd like the equity to reflect the risk — around 0.40% of the company's total shares."
"Could part of my bonus be tied to revenue milestones, paid quarterly? It aligns us both on growth."
"To offset the pay cut vs. my other options, would you consider a signing bonus or a small block of shares that vests on day one?"
Each time the company raises money it creates new shares for investors, so your 0.150% could shrink to about 0.077% after roughly 3 more rounds. That's normal, which is why it's fair to ask whether you'll receive extra grants over time to keep pace.
Companies spread your shares over several years (often four, with nothing until your first anniversary) so you're rewarded for staying. Ask what happens to unearned shares if the company is sold and you lose your job, and how long you'd have to buy your shares if you leave.
Investors buy a special class of stock that gets paid back first, while employees get common stock that is paid from whatever is left. The company's 'valuation' is the investor price, so your common shares are usually worth noticeably less than that headline number suggests.
Disclaimer: Results are estimates and suggestions only, based on general market data for US venture-backed startups. They are not legal, tax, or financial advice and are not legally binding. CompDecoder and its operators accept no liability for decisions made based on this information. Consult a qualified professional before accepting or negotiating an offer.