Hey all,

Need some advice on this one. Currently I work at in leadership at a small startup in sales/marketing. I was promoted several years ago and given a comp structure with a combination of phantom equity , profit share and increased base.

Since that promotion I’ve really excelled in my role. I’ve sourced and sold millions in revenue for our small company. A rough estimate is that I’ve sourced/sold about 20%-30% of the company’s total revenue. It almost certainly has directly impacted the total valuation of the company.

Obviously part of my role was to drive sales, but I’m guessing my results are well exceeding any expectations. I’d say my role is extremely hard to replace. No one at the company would be able to fill it and there are very few external hires they could make.

Now, we’re in the middle of a company acquisition. Acquiring company wants to sign us to new contracts. After calculating it out, my total comp would actually be going down and phantom equity is paying out much less then what I thought. The new contract would require me to sign a lengthy NDA as well.

Would it be a mistake for me to sign the new contract (although it’s the “safe” bet). Or would this be an opportunity to renegotiate given my company impact? Also, should I consult any type of legal counsel that could help me determine the best path?

  • Expensive-Manager-56@alien.topBEnglish
    1·
    1 year ago

    If you are a key person tied to the success of the business, it’s common to negotiate things like stay-put incentives and payouts tied to company performance.

    The reason for the acquisition also will be a big factor. If they have any intention to continue to grow your company you probably have some decent leverage. I’d seek to meet with them and be prepared to demonstrate the value you bring. It might be good to have an idea of what you’d want to be happy, but I’d be inclined to see what they offer first and negotiate from there. No telling what they might offer you and you wouldn’t want to short change yourself if they would offer you more than what you would ask for.

    I’d be more concerned about a non-compete than an NDA. NDAs are pretty standard. I would still recommend having a lawyer review anything.