I will be starting a new job soon in a Director position where they have acquired a couple new locations and they need assistance expanding operations. From my understanding the shares in the company are divided between 3 people, 1 of those being the owner. I would like to some kind of salary and equity split but am unsure what to expect at this point.

These new locations need to be completely overhauled and redesigned, along with establishing SOPS with continued training to promote standardization across the sites. Needless to say there’s a boat load of work to do on the front end to get this ready to scale.

For reference this is in the agriculture industry and they have around 5 mil in revenue from what I can gather. I was an early employee in a similar start up years ago but couldn’t have serious equity conversations due to a lack of experience. Any insight or thoughts would be greatly appreciated as I want to set my self up for the future best I can with this opportunity.

  • reward72@alien.topBEnglish
    1·
    1 year ago

    I agree with DbG925.

    At $5M in revenue the company could be worth anything between $15M and $100M (or more) depending on many things - ask how much it was valued at the last round if they made one. I would aim for the equivalent of 50% to 200% of my salary worth in stocks.

  • DbG925@alien.topBEnglish
    1·
    1 year ago

    Not really enough info to go off of, but a rule of thumb in a tech startup:

    1. Remember, employee number means nothing. The options pool is meant to be able to bring on and incentivize the next 100 or so employees. Options pool generally is between 15-22%. If they hired a janitor as employee 3, do you think the janitor should get more equity than a CxO coming in at number 58?

    2. Equity is based both on function (vp of engineering would generally get more than a vp of hr) and level.

    3. For a company making 7 figures of revenue a general guide would be something in the range of: VPs .5-1.5%, Directors .25-.75%, sr managers .1-.25% then anything else below.

    I know this is all super rough, but I see so many posts here with people with completely unrealistic expectations. In a company already making revenue there is very little risk (and not to the level of what the cofounder took to start it). Don’t expect even a single digit percentage.